Kumar Mani Thapaliya, President of the Nepal Association of Tour and Travel Agents (NATTA) has urged the government to reassess the Value Added Tax (VAT) imposed on aviation services and the overall tax burden on the tourism sector. Speaking with Corporate Nepal, Thapaliya emphasized the need for a swift resolution to the VAT issue on airfare.
He remarked, “The VAT imposed on aviation services is impractical, and the entire tourism taxation system needs review. The Ministry of Tourism should form a committee to investigate the reasons behind the high airfare, including the impact of VAT.”
Thapaliya expressed optimism over the appointment of a new CEO at the Nepal Tourism Board (NTB), hoping the new leadership will address the industry’s concerns. He also criticized the heavy political interference in the board, which, according to him, hinders its efficiency. “The NTB should operate under the Public-Private Partnership (PPP) model, as originally intended, but excessive political meddling has caused obstacles,” he stated.
He urged the new CEO to focus on revitalizing the board and addressing issues such as bureaucratic hurdles and political influence. Thapaliya also called on the Minister of Culture, Tourism, and Civil Aviation to take decisive action and resolve the board’s stalled projects.
Thapaliya further noted the alarming decline in tourist numbers, warning that if policy and problem-solving initiatives are not improved, the situation could worsen. “The government must take this issue seriously and not dismiss it lightly,” he added.
He pointed out that the frequent changes in tourism ministers and secretaries, along with unstable policies, have hampered the sector’s growth. He also highlighted the need for reform within Nepal Airlines, emphasizing that new leadership is essential for the national carrier’s improvement and expansion.
“The airline needs a capable leader with the vision to propel Nepal’s aviation sector forward. We, from the private sector, are ready to contribute and bring in teams of experts to support this endeavor,” Thapaliya said, urging the tourism minister to make bold decisions for the improvement of Nepal Airlines.
He concluded by calling for the implementation of the Tourism Decade, which aims to develop tourism infrastructure and add new airports and aircraft. Failure to do so, he warned, would leave Nepal lagging in tourism development.
