Kathmandu, July 18 : The Department of Inland Revenue has introduced a new working procedure to enforce the payment of an additional charge on foreign tour packages. This measure is part of the government’s initiative to implement a five percent tax on tour package expenses for Nepali citizens traveling abroad.

According to the procedure, tours and travel companies arranging foreign trips for Nepali clients are mandated to collect an extra five percent fee from their customers and remit it to the government. Additionally, foreign firms or companies organizing trips to Nepal for business promotion purposes must also comply with this tax regulation.

The tax payment can be made through designated offices, including the Taxpayers’ Service Office, Inland Revenue Office, Medium-Level Taxpayers’ Office, or Large Taxpayers’ Office. The deadline for payment is set on the 25th day of the subsequent month, and any delays will result in a 2.5 percent interest charge per month, accumulating to 15 percent annually.

The government outlined two primary objectives for this provision. Firstly, it aims to promote domestic tourism and encourage Nepali citizens to explore and experience the country’s local destinations. Secondly, the measure seeks to prevent capital flight resulting from foreign trips by incentivizing travelers to choose domestic tourism options.