Kathmandu. The Department of Internal Revenue has prepared and implemented the Working Procedure related to luxury fees, 2082 BS.
The Department has implemented this procedure to implement the provision of luxury duty on services provided by five-star and above star hotels and luxury resorts, imported liquor, gold and gold ornaments in Section 17 of the Finance Act, 2082 BS.
The Department has made clear provisions in the working procedure regarding the basis and rate of levying luxury fee. As per the procedure, five-star hotels and luxury resorts will have to charge 2 per cent of the pre-value added tax (VAT) value-added tax (VAT) levied for service while providing service.
Similarly, according to the procedure, the customs office concerned has to charge 2 percent at the customs point at the time of import of mahiras imported into Nepal at the price before the VAT.
It has also been provided in the procedure that the seller of gold or gold ornaments has to recover at the rate of 2 percent of the price at the time of sale. However, there will be no luxury fee on the sale of gold and gold ornaments from the business to the business and from the general public to the business.
