HAN submits 10-point proposal to govt

BY A STAFF REPORTER

Kathmandu, Aug. 31: Hotel Association Nepal (HAN) has submitted a 10-point proposal regarding important tourism-related issues to the government for its immediate action.

The proposal was passed by the recently held Half-Yearly Annual General Meeting of HAN.

In a press statement, HAN has asked the government provide the matching fund to Nepal Tourism Board (NTB).

"During the time of the establishment of NTB, the government had agreed to make available the matching fund to the fund of NTB as grant. As per the legal provisions, the private sector companies have been generating a 2 per cent service charge from tourists to run NTB," the statement reads.

HAN has also opposed the provision of charging 10 per cent Value Added Tax (VAT) on the money collected by the private sector companies by paying two per cent service charge while transferring it from VAT Office’s bank account to the one of NTB.

"As the VAT Office charges the 10 per cent VAT from the collected service charge as management charge, it is unjustifiable," the statement further reads.

It has also requested the government to free NTB from the narrow boundary of petty interest of individuals and develop it as an organization to involve in the overall development of tourism industry.

It has, however, lauded the initiative taken by the newly nominated board of directors of NTB to increase the participation of the concerned agencies and associations for formulating policies and programmes.

In the meantime, HAN has also appealed to the leaders of the CPN (Maoist) to totally stop raising donations from the hoteliers by intimidating and frightening them. "HAN has taken the government-Maoists talks as a positive step to restore peace and security in the country," it says.

Furthermore, HAN has asked the government to rewrite the draft of the Income Tax 2058 Bill, which has been registered in the Parliament. "Since the language of the Bill is not clear and some of its provisions cannot be implemented properly, we ask the government to make necessary amendments in the Bill," it says. As it is a matter of interest of the industry, trade and tourism sectors, the Bill should not be passed in haste, it has said further.

It has also told the government to recognize the tourism industry as a priority industry. "We strongly urge the government to express its firm political commitment to give priority to the tourism industry," it says.

Similarly, HAN has asked government to review its policy regarding the electricity. "The tariff hike of electricity can badly affect the hotel industry. Considering it, the government should review its policy," it further says.

It has also drawn the government’s attention towards issuing licenses to open new industries only in new tourist sites to diversify tourism industry. "The government has to stop issuing licenses to establish industries in the over-saturated areas," it says.

HAN has further demanded that the management of Royal Nepal Airlines Corporation (RNAC) be improved. "Keeping in view the inefficiency on the part of the RNAC management to operate reliable flights to the international sector, the government has to think of handing over its management to the international management companies on contract basis," it says.

HAN has also asked the government to encourage the tourism entrepreneurs by waiving of income tax on the basis of quantity of foreign currency earned.