SC issues interlocutory order to not implement VAT on air ticket

July 31, Kathmandu: The Supreme Court issued an interlocutory order on Sunday, asking the government to not implement value-added tax (VAT) on air tickets.

The SC issued such an order in response to a writ petition filed by the Nepal Association of Tours and Travels Agent (NATTA).

A single bench of Justice Anil Kumar Singha issued the order and also summoned the government side for discussion.

NATTA had moved the SC on July 17, seeking mandamus with certiorari against the government’s decision to impose VAT on air tickets.

Finance Minister Dr Prakash Sharan Mahat announced to implement VAT in a plane ticket via the budget presentation for this fiscal year.

The tourism entrepreneurs had however argued that the VAT imposed on air tickets was not friendly to tourism entrepreneurs which would impact adversely the tourism business.

Travel companies and passengers would bear the brunt of VAT, NATTA had asserted. RSS