Supreme Court Orders No VAT on Air Tickets

The Supreme Court has issued a short-term interim order, ruling against the imposition of Value Added Tax (VAT) on air tickets.

The government had proposed to levy VAT on air tickets through the budget statement of the current fiscal year 2080/81.

Following a writ filed by the Nepal Association of Tour & Travel Agents (NATTA), the bench led by Judge Anil Kumar Sinha has ordered the government not to immediately implement the decision to impose VAT on air tickets.

The Supreme Court has scheduled both parties for an interim order hearing and has requested a written response from the government regarding the case.