Kathmandu, May 18 (HS): Chinese airline companies are reportedly not complying with Nepalese tax laws, as highlighted by a recent annual report from Nepal’s Auditor General. While all other foreign airlines operating in Nepal pay taxes, four Chinese airlines—Air China, Southern China Airlines, China Eastern Airlines, and Sichuan Airlines—have failed to remit any taxes to the Nepalese government. The report indicates that by December 2024, this non-compliance could cost the Nepalese government around 4 billion rupees. It urges swift action to collect these taxes, suggesting that the government consider suspending the services of the Chinese airlines if they persist in their non-payment.

Dinesh Ghimire, a former Revenue Secretary, stated the ministry has reached out to these airlines multiple times without receiving any response. The Chinese ambassador previously argued that their government’s regulations exempt airlines from additional taxes or VAT worldwide, questioning the necessity of such taxes in Nepal. The Ministry of Finance advocates for the suspension of these airlines’ operations and the revocation of their licenses, but political challenges have prevented decisive action.

Hindusthan Samachar / Jun Sarkar