Nepal 'downgrades' diplomats to tourists

Posted on 10 April 2005, © Indo Asian News Service

World News, Kathmandu : Authorities in Nepal have begun collecting a new tourist tax from diplomats, foreign government employees and foreigners living in the kingdom even though they are exempted from the levy.

This February, when the ambassadors of India, the US and European Union countries were summoned by their respective governments for consultations on the political changes in Nepal since the royal coup of Feb 1, they all paid the tourist tax. UN staffers posted in Nepal for three years, employees of foreign government organisations like Indian Airlines, India's national carrier, or the State Bank of India and all who hold a non-Nepalese passport have had to pay the levy meant only for tourists.

The Sher Bahadur Deuba government imposed the new tax in its last days to raise funds to fight Maoist insurgents. Earlier, tourists paid a two percent surcharge on bills as a "tourist service" charge. The government later simplified the process and collected a sum of Nepali Rs.500 while they were leaving the country. With a hike in Value Added Tax (VAT) to 13 percent, the amount increased to Nepali Rs.565.

The cash-strapped government is now collecting the toll from anyone who flies out of Kathmandu. It is a double blow for Indians since according to a pact between India and Nepal, each country has to give the other's citizens the same facilities as its own. However, as things now stand, while a Nepalese pays only Nepali Rs.791 each time he flies out of Kathmandu, an Indian has to pay nearly double that.

Indians have to pay the tourist tax of Nepali Rs.565, whether they are tourists or not, and the airport tax of Nepali Rs.791. Altogether, it comes to a hefty Nepali Rs.1,356. Before January, Indians had to pay only Nepali Rs.770 as airport tax. "When Nepal is desperate for tourists and airlines are slashing fares between Delhi and Kathmandu, it is sheer short-sightedness," said Prem Lashkari, founder of Nepal-India Friendship Society and convenor of the Dharmayatra Mahasangh that facilitates religious tourism in Nepal. "If the departure tax is more than half the air fare, why would Indian tourists come to Nepal? Besides, in India, Nepalese are not asked to pay any tourist tax. So why this discrimination?"

It is unfair to slap the tourist tax on non-tourists, said Raju Bahadur K.C., who heads the Board of Airline Representatives of Nepal. The board made a representation to Nepal Tourism Board (NTB), the state agency for promoting tourism, to scrap the tourist tax for non-tourists. But NTB said it was a government decision and it was powerless. Raju Bahadur feltthat if diplomatic missions made a representation to the government, it might produce results.

"Each time we express concern at any unconstitutional measure taken by the Nepalese government, it says it is an internal matter of Nepal," said a diplomat who preferred to remain unnamed. "

But when the government is raising money from us unfairly, it should realise it can't take that highhanded stand." Sphere: Related Content