Dashain travel costs soar as government levies VAT on airfares « Khabarhub
Tuesday, July 23rd, 2024

Dashain travel costs soar as government levies VAT on airfares

16 October 2023  

Time taken to read : 2 Minute

  • A
  • A
  • A

KATHMANDU: The Dashain travel has encountered a surge in expenses as the government’s implementation of a 13% VAT in this fiscal year’s budget has caused airfare prices to soar compared to the preceding year.

According to statements from air service providers and the Civil Aviation Authority, the imposition of VAT has led to a noticeable five to six percent hike in airfares.

Consequently, since the government’s decision, air service operators have been incorporating the VAT into ticket costs.

However, the Nepal Tour and Travel Agency contested the decision in the Supreme Court, prompting Judge Anil Kumar Sinha to issue a short-term interim order preventing the inclusion of VAT in airfares.

Subsequently, on September 1, a panel comprising Justices Ishwor Prasad Khatiwada and Sushma Lata Mathema overruled the interim order.

As a result, a 13% VAT has been applied to airfare prices specified by the regulatory authority.

The fare for distant routes like Dhangadhi has now surpassed Rs 17,000.

Airline companies have stated that while they used to offer affordable ticket rates when there were passengers traveling in both directions, the fares have now increased as most of the journeys are one-way.

Notably, the fare for Dhangadhi is Rs 5,000 more expensive than the Kathmandu-Delhi route.

For a Monday flight, Buddha Air is charging Rs 17,186 for the Dhangadhi route, while the fare for Delhi from Kathmandu stands at Rs 13,223.

The aerial distance between Kathmandu and Delhi is approximately 800 km, whereas the distance to Dhangadhi is 483 km.

Furthermore, Bhutan Airlines charges Rs 13,223 for the Kathmandu-Delhi route on the same day, while Indigo has set the fare at Rs 14,734.

Some of Shree Airlines’ Monday flights are priced at Rs 13,500, with Buddha Air is charging Rs 17,186.

Publish Date : 16 October 2023 06:56 AM

Nepal sees Rs 1,440 billion foreign trade deficit in 2023/24

KATHMANDU: Nepal’s foreign trade in the fiscal year 2023/24 saw

UML finalizes names of new ministers in Bagmati Province

KATHMANDU: As the Nepali Congress (NC) and CPN-UML agree to

Bahadur Singh Lama stakes claim as Bagmati Province CM

KATHMANDU: Bahadur Singh Lama, the parliamentary party leader of the

Service seekers undergo hassles at Transport Office (Photos)

KATHMANDU: Service seekers at offices under the Transport Management Department

Cash crops worth over Rs 15 billion exported to India from Kakarvitta point

JHAPA: Kakarvitta, a key transit point in Jhapa of eastern