Kathmandu- Nisha Dangi, a member of Parliament from the Rashtriya Swatantra Party, has called on the government to abolish the Value Added Tax (VAT) imposed on digital payments.
Speaking at a House of Representatives meeting on Friday, she expressed concerns that the VAT on digital payments is discouraging citizens from using these services. She stated, “If the government truly wants to promote digital payments, it is essential to reduce taxes and offer free payment options.”
Dangi further emphasized, “I urge the Government of Nepal and the Ministry of Finance to take immediate action through the Speaker to amend the policy or establish a national payment system, and start working today to make digital transactions free, without affecting the existing payment gateways.”
Following the imposition of VAT on digital payments, the service charges for platforms like PhonePay, eSewa, Khalti, Connect IPS, and others have risen. Additionally, Nepal Rastra Bank has set a maximum charge of Rs 10 per transaction for interbank fund transfers.