Luxury tax comes into force

KATHMANDU, JULY 17: The government has implemented a two percent luxury charge on services provided by high-end hotels and resorts, as well as on imported liquors and precious metals.

The very implementation from today is in line with the budget for the new fiscal year 2023-24 which was presented on May 29 before the Federal Parliament.

The four and five-star hotels and resorts charge their clients two percent additionally while providing services from coming mid-July. The tax is applied on ornaments made up of precious metals and stones such as gold, diamond, pearls, and gems worth over Rs 1 million. The tax is levied on imported alcoholic products at the customs point during times of transportation.

In case of the non-payment of the luxury tax, it will be recovered along with a 15 percent interest rate annually. Likewise, if the statement related to luxury tax is not submitted, such a responsible person will be charged a fine of 2.5 percent annually until the submission of the details.