Kathmandu—Lawmakers have urged the government to remove the value-added tax (VAT) on airfares, citing the high cost of flights to Nepal as a major obstacle for both tourists and Nepalese travelers.
During a meeting of the International Relations and Tourism Committee at Singha Durbar on Monday, MPs expressed concerns that expensive airfare was forcing Nepalese passengers to opt for foreign airlines instead of domestic carriers when flying to Nepal.
Nepali Congress MP Udaya Shumsher Rana emphasized that Nepal’s tourism sector was negatively impacted because getting to Nepal is costly, but staying in Nepal is cheap.
"If airfare to Nepal were more affordable, tourists would be willing to spend more once they arrive. However, the current situation is the opposite—flights are expensive, but the cost of staying in Nepal is low. Countries like Thailand and the U.S. have cheaper airfare but higher living expenses, whereas Nepal faces the reverse scenario," he said.
Rana urged the government to include airfare policies and tax reforms in the upcoming fiscal year’s policy and programs.
Concerns Over Airport Customs and Spending on Tourism Infrastructure
Nepal Workers and Peasants Party MP Prem Suwal accused a small group of customs agents of monopolizing airport customs operations. He claimed that although Nepal has over 700 customs agents, only 8–10 individuals dominate airport customs, raising concerns about possible government collusion or negligence.
"Even some agents living abroad control Nepal’s airport customs. Is this happening with ministry-level coordination, or is the government unaware? The government must take action to regulate this," he stated.
Meanwhile, Rastriya Swatantra Party MP Shishir Khanal criticized the Ministry of Culture, Tourism, and Civil Aviation for underutilizing its capital budget, with only 15% of the budget spent, despite just four months remaining in the fiscal year.
He also questioned the lack of progress on Nijgadh International Airport, despite the government labeling it a priority project. Additionally, he raised concerns about inflated tourist arrival data, arguing that non-resident Nepalis (NRNs) are counted as tourists, potentially distorting actual tourism recovery figures.
"We need a thorough study on whether the arrival of NRNs significantly impacts Nepal’s economy," Khanal added.
Call for Janakpur Airport Upgrade
Nepali Congress MP Bimalendra Nidhi urged the government to upgrade Janakpur Airport, the main airport in Madhesh Province. Despite the federal government’s regional airport development strategy, the expected improvements at Janakpur Airport have not materialized, he said.
The committee meeting focused on the progress of the Ministry of Culture, Tourism, and Civil Aviation, discussing upcoming plans, policies, and strategies for the next fiscal year.
