Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepalese government has announced plans to provide significant incentives ranging from discounted airfare to reduced fuel prices to ensure the full operational capacity of Gautam Buddha International Airport in Bhairahawa and Pokhara International Airport.
This decision follows a meeting chaired by the Prime Minister, which included ministers and officials from relevant ministries. The meeting discussed options and measures for the full operation of both airports based on recommendations provided by a special task force.
Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey stated that the government has developed a strategic plan to offer discounts on air tickets, ground handling, and aviation fuel until Bhadra 2083 (September 2026). The aim is to boost the operational efficiency of the two international airports.
Minister Pandey further explained that, based on the task force’s recommendations and the demands from airlines, the government has decided to waive ground handling service charges at both airports until Bhadra 2083. “During this period, the government will also exempt the VAT on air tickets,” he added.
Additionally, Minister Pandey mentioned that the government plans to waive the tourism board’s per-ticket fee for both airports during this time frame. The exemption of VAT on air tickets until Bhadra 2083 is also part of the government’s initiative to encourage airline operations.
In coordination with the Ministry of Industry, Commerce, and Supplies, a plan has been developed to provide aviation fuel at a lower price in Bhairahawa than at Kathmandu Airport. Minister Pandey also highlighted the ongoing efforts by the Labor and Foreign Affairs Ministries to manage the operations of immigration offices and visa centers at the airports.
Moreover, the Ministry of Agriculture and Livestock Development has presented a plan to the Cabinet for managing quarantine inspections at the airports. Minister Pandey expressed confidence that these incentives and measures will lead to the full operation of both Gautam Buddha and Pokhara International Airports.
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