Businessmen have complained that the value added tax (VAT) imposed since the last fiscal year, including air tickets, has become a nightmare for Nepal's tourism industry.

In a pre-budget discussion and discussion organized by the Confederation of Nepal Industry in Lalitpur on Tuesday, businessmen said that due to the VAT imposed on air tickets in Nepal, billions of rupees have gone from the Nepali market to foreign markets, Hyundai has gained popularity and the number of tourists has decreased.

Secretary of the Ministry of Culture, Tourism and Civil Aviation Vinod Singh, Chairman of the International Relations and Tourism Committee of the Parliament Rajkishore Yadav, MP Uday Shamsher Rana, Sunita Baral, Head of Tourism Department of UML and former Tourism Minister Bhim Acharya, President of the Confederation Rajesh Kumar Agarwal and others participated in the discussion.

Nepal's tourism market has the largest number of 11 lakh 47 thousand foreign passport holders (tourists). However, the general secretary of Nepal Association of Tour and Travel Agents (Natta) Yuvika Bhandari said that domestic and international air fares are very expensive due to VAT. She demanded that the federal government collect 2 percent tourist tax from a single system instead of VAT to remove the tax hassles.  The purpose of the

discussion was to give suggestions to the government for the policies and programs and budget of the next financial year. But the participants were the officials of the umbrella organization of the professions such as hotel, airline, climbing, tour, travel, restaurant, tour guide, travel, etc. They all suggested that VAT on air tickets should be removed next year.

"Due to VAT, my parents have to go to America, I made my sister buy tickets from America", Shiv Adhikari, president of Nepal Rafting Agencies Association (NARA), said, "Buying in Nepal costs an additional 13 percent VAT." Because it is cheaper to buy abroad than that, I was forced to buy from there.'

Due to the fact that the economic condition of Nepal's tourism industry, which has weakened due to the corona epidemic, has not improved yet, due to the fact that the loan payments of banks and financial institutions have not been regular, the businessmen have been repeatedly demanding before the government through the parliamentary committee to withdraw the VAT imposed on air tickets, ship imports, spare parts, etc.