Tourism organizations have appealed to Finance Minister Barshman Pun for the removal of the luxury tax, submitting a memorandum last Friday outlining critical issues for the upcoming budget. Binayak Shah, President of the Hotel Association Nepal (HAN), highlighted that while Nepal’s tourism sector can cater to 3.5 million tourists with quality services, current arrivals only utilize one-third of this capacity, resulting in financial constraints for the sector.
Shah emphasized the need for a thorough budget review and the implementation of suitable policies and plans for institutional development to foster sectoral growth. He advocated for a broader tax rate and eliminating luxury hotel taxes in the forthcoming budget. Similarly, the President of NATTA, Ramesh Thapa, criticized the impracticality of air travel taxes and called for their removal.
In addition to the issues outlined in the memorandum, President Shah stressed the importance of recognizing the hotel and tourism industry as a national priority, with adequate service facilities.
Finance Minister Pun has acknowledged the legitimate demands of tourism entrepreneurs and assured them of appropriate actions. The meeting also included representatives from the Nepal Association of Rafting Agencies (NARA), with President Shiva Adhikari, the Nepal Mountaineering Association (NMA) represented by Senior Vice President Thakur Raj Pandey, General Secretary Kumar Mani Thapaliya from NATTA, Rajendra Lama from the Nepal Tourism Board (NTB), and HAN’s Chief Operating Officer, Tek Bahadur Mahat.