With the gradual disappearance of the Covid-19 pandemic, Nepal is experiencing an increase in tourism activities.
The effect of the increase in inflow of tourists is clearly visible in the value added tax (VAT) collected from the tourism sector.
According to the data released by the Nepal Tourism Board (NTB), more than 117,000 tourists arrived in Nepal in the month of October.
The Inland Revenue Department (IRD) reports that the increase in the inflow of tourists has boosted revenue from the tourism sector, particularly from hotels and restaurants.
In Kartik (mid-October to mid-November) of the current fiscal year, the IRD collected 34 percent more VAT from the tourism sector than in the corresponding period of the previous year. Last year, the IRD collected Rs 148 million VAT from the tourism sector which increased to Rs 189.8 million in the current fiscal year.
