The Hotel Association of Nepal (HAN) has urged the government to scale down 13 percent VAT (Value Addition Tax) currently being imposed on tourism sector to 10 percent in the upcoming annual budget.
The HAN came up with the proposition to this effect while forwarding prescriptions to the government on behalf of the hotel entrepreneurs for the budget of the next fiscal year 2067/68.
"The hotel business consumes more agricultural products. Since the government has exempted the agriculture sector from VAT, it will be suitable to reduce the level of the same to 10 percent in the tourism sector," stated the HAN in its seven-point suggestion forwarded to the government.
The Association also demanded the government to give the facility of exemption of income tax to the hotel business too since it is one of the major foreign exchange earners. According to the HAN, this measure will help to enhance the quality of tourism service of the country.
The HAN also suggested for the involvement of the private sector in the management of the Tribhuwan International Airport (TIA) and the adoption of BOOT (Build-Own-Operate-Transfer) concept in construction of regional airports in Pokhara and Bhairawaha in conduction with private parties, among others.
Likewise, it has advocated for classification of restaurant business as an industry, concessions on customs duties while importing necessary hotel related equipments and tools to ensure expansion of the accommodation capacity of hotels in view of Nepal Tourism Year 2011.
The HAN is also of the view that the government should nullify visa fees at least for the coming two years to promote the image of Nepal in international tourism market. nepalnews.com
