SC halts VAT on air ticket

Issuing an interlocutory order on Sunday, the Supreme Court has asked 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 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 government decision to impose VAT on air tickets. Finance Minister Dr Prakash Sharan Mahat had announced to implement VAT in plane tickets 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 on the tourism sector. Travel companies and passengers would bear the brunt of VAT, NATTA stated.