Air ticket price hike likely due to VAT

Kathmandu: The flight fares are likely to soar after the government imposed Value added tax (VAT) on the air tickets with effect from the fiscal year 2023/024.

Aviation sources said the air ticket prices are expected to go up by six per cent due to VAT imposition.

Airline Operators Association of Nepal informed that since most of the airlines companies are going to register on VAT as directed by the government, the prices of air tickets are to increase.

The VAT charges are usually 13% on any goods and services. Earlier, VAT was not charged on air tickets.

It is customary that government charges 13 per cent as VAT on goods and services.