Domestic airline companies in Nepal have recently announced the implementation of value-added tax (VAT) on their services, starting today.

The Airlines Operators Association of Nepal issued a press note today, informing the public about their decision to incorporate VAT in domestic airfares, aligning with the budget for the upcoming fiscal year 2023-24.

Consequently, the fares for domestic services have increased by up to six percent. As a result of this VAT inclusion, passengers will now experience a slight rise in the costs of domestic air travel.