Nepal Association of Tour and Travel Agents (Natta) has expressed its displeasure that the budget for the next financial year 2082/83 has not removed VAT on air fares. Natta General Secretary Yuvika Bhandari issued a statement on Saturday and said that serious attention has been drawn to the annual budget of the year 2082/83 released by the government.

"Among the various issues that have been continuously raised before the government for the past two years, especially the complex and unfavorable system related to the value added tax (VAT) levied on national and international air fares, the fact that this tax has been maintained this year has shocked all those concerned with tourism," the statement said.

Stating that the presented budget has brought positive policies and arrangements in various aspects of the tourism sector, General Secretary Bhandari opined that the arrangements related to value added tax (VAT) which directly affects the fares of air services at the initial stage of entering Nepal has discouraged the movement of tourists.

'A situation has arisen where more than three-fourths of the total travel expenses of tourists are spent on air travel. Without adequate movement of tourists, there is a possibility that the positive aspects mentioned in the budget related to tourism promotion may be overshadowed and their implementation may be directly hindered. As a result, there is a strong possibility that those arrangements will be limited only to announcements', said in a statement issued by Secretary General Bhandari.

Natta has expressed his displeasure saying that the Finance Minister, Tourism Minister, MP and leaders of various political parties have expressed their displeasure saying that the VAT levied on air fares is extremely unfair in the public forum, that it is not in line with international values, will adversely affect the promotion of tourism and will hinder the air access of Nepalis in geographically difficult areas, but it has not been implemented.