Nepal introduces ‘luxury tax’ for the first time

KATHMANDU: The government has for the first time enacted a “Luxury Tax.”. People who stay in and use services at four- and five-star hotels will be subject to an additional luxury tax of 2%.

The VAT rate on it will be 13% after the additional 2% tax. The cost of hotel sector services will increase as a result.

Diamonds, pearls, gold, and silver valued at Rs 1,000,000 will also be subject to a luxury tax. Liquor imported from abroad will also be subject to a luxury tax.

In addition, those who travel internationally must pay taxes. Travelers now have to pay an additional 5% tax. The tax rate for those who study abroad has increased from two percent to three percent.

The government has also raised taxes on staffing firms that send jobs abroad. They must give the government a 1% tax when they send out employees.

Fiscal Nepal |
Tuesday May 30, 2023, 10:50:37 AM |

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