February 21 , 2018
A delegation of Trekking Agencies’ Association of Nepal (TAAN) visited the Director General of Inland Revenue Department (IRD) on 21st February, 2018. A delegation led by the President Nava Raj Dahal handed 4 point memorandum over to the DG Kishor Jung Karki.
Speaking at the meeting, President Dahal stated the role played by TAAN for uplifting the Nepalese tourism. He raised problems that trekking entrepreneurs faced while filing tax details and appraised the DG about the hassles faced by trekking business due to expensive VAT charges i.e. 13% that makes the trekking package more expensive comparing to its competitors like India, Bhutan and so on. Thus, he requested the DG to reduce the VAT percent for tourism industry.
Similarly, President Dahal solicited the DG to formulate policies to end the management of charging VAT for using transport as labor force, khachhad and yak during trekking. Likewise, trekking agents are facing difficulty in submitting details of expenditures made in rural areas where they don’t get tax invoice. “Hotels, lodges and home stay operators do not give tax invoice. Hence, trekking agents are facing difficulties in showing their expenditures,” Dahal said, requesting DG to resolve the issue.
The delegation raised the voice upon 13 % VAT charges for National park and Conservation area permit fees that was implemented in a short- notice. “We don’t want to evade tax; we only want the government to simplify provisions related to tax”, the delegation requested if the VAT is charged, the amount must be separated rather collecting it jointly. Therefore, they were hopeful that the concerned government authority will take the issues seriously.
Likewise, Gopal Shrestha, TAAN Executive Member questioned on charging the VAT on compulsory basis for trekking business.
DG Kishor Jung Karki said that tourism is one of the important sectors that facilitate the economic status of the country. He was positive towards the issues raised by TAAN and thus, assured to discuss the topic and formulate the policies accordingly. Answering about compulsory VAT charged for trekking business, he said “there was the policy to charge compulsory VAT for trekking business till 2072 B.S. but after, there is a threshold of 20 Lakhs of total income.”
TAAN General Secretary Ang Pemba Sherpa, Secretary Sujan Lamichhane, Treasurer Ram Krishna Timalsina, Executive Members Rajan Prasad Kapri, Gopal Shrestha, Ram Bahadur Kadka, Baburam Gurung, Mahesh Kumar Budha, Media officer Subina Manandhar and Photographer Pemba Sherpa were present at the delegation.