Home Business Airline Fares In Nepal to Rise by 6% Starting Today, Following VAT Implementation

Airline Fares In Nepal to Rise by 6% Starting Today, Following VAT Implementation

Nepal’s airline industry is set to witness a 6% increase in airfares, effective immediately, according to a press release issued by the Nepal Airlines Operators Association on Sunday. The decision comes after the government’s imposition of a value-added tax (VAT) on domestic flights, prompting airlines to inform passengers about the upcoming fare adjustments.

The VAT implementation on air transport services was specified in the financial budget for the year 2080/081. As part of this tax measure, the government has levied a 13% VAT on service charges. However, it’s important to note that the increase in air ticket prices will not be equivalent to the full 13% VAT rate.

While the move is likely to impact travelers, industry stakeholders are working to mitigate the impact as much as possible. Despite the increase in airfares, authorities have assured that measures are in place to ensure minimal disruption for passengers while upholding the government’s fiscal objectives.

As the VAT takes effect, both airlines and the government are closely monitoring the situation to gauge its effects on the aviation sector. Passengers are advised to check with individual airlines for specific details on the revised fares and any potential adjustments to their travel plans.

In conclusion, the 6% increase in airfares will be implemented following the introduction of VAT on air transport services. The decision aims to strike a balance between financial considerations and ensuring a smooth travel experience for passengers in Nepal.


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