Kathmandu. The Government of Nepal has announced a series of tax and VAT exemptions to ensure the full-scale operation of Gautam Buddha International Airport in Bhairahawa and Pokhara International Airport.
This decision was made during a meeting led by the Prime Minister, which included relevant ministers and officials, to discuss solutions and alternatives for the full operation of these airports.
Based on the recommendations of a task force, the government has decided to provide exemptions on various charges, including air tickets, ground handling, and aviation fuel, until 2083. Minister of Culture, Tourism, and Civil Aviation Bhadri Prasad Pandey confirmed the decision, stating that these measures are crucial for maximizing the operational potential of both airports.
The government will also exempt the taxes associated with ground handling and the fees collected by the Tourism Board on each ticket until 2083. Minister Pandey expressed concerns that the significant investment in the construction of these airports has not yielded the expected financial returns, turning the airports into a burden for the government.
The failure to generate anticipated income has raised doubts about the government’s ability to repay the debts incurred during construction.Additionally, an agreement has been reached with the Ministry of Commerce and Industry to ensure that fuel prices at Bhairahawa and Pokhara airports are lower than those at Kathmandu Airport.
The Ministry of Labour, Employment, and social security, along with the Ministry of Foreign Affairs, will manage the operation of immigration offices and visa centers, while the Ministry of Agriculture and Livestock Development will oversee quarantine checks. A proposal regarding these measures has been submitted to the Council of Ministers for further discussion.
Minister Pandey emphasized that these airports are projects of national pride and strategic importance, and all government bodies must collaborate to ensure their successful operation. The government hopes that the incentives provided will contribute to the long-term viability and success of these airports.
By: Grishma Tamang