KATHMANDU, April 23: The Federation of Nepalese National Transport Entrepreneurs has warned that it cannot continue providing the 45 percent fare discount to students unless the government implements the tax concessions promised to operators.
The federation issued this response after the Department of Transport Management asked operators to enforce the discount based on an earlier decision.
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In a letter addressed to the department’s director general, the federation stated that since Nepal adopted a federal structure in 2015, responsibilities in the transport sector have been divided, and the concessions previously provided to operators have been discontinued.
According to a 2009 agreement between the government and transport entrepreneurs, students were to receive a 45 percent fare discount, while operators would get a 60 percent waiver on annual taxes, route permits, and vehicle inspections in return. The federation claims this arrangement remained in effect until 2015.
However, after federalism was introduced, provinces except Koshi scrapped the 60 percent tax waiver for operators and increased tax rates unevenly, the federation said.
In the letter signed by General Secretary Dek Nath Gautam, the federation stated it cannot implement the department’s directive unless both the federal and provincial governments reinstate the 60 percent tax relief.
The federation also complained that repeated requests to the federal government, provincial governments, and the Ministry of Finance for tax adjustments have gone unheard.
Still, it said it remains open to discussions with the Ministry of Physical Infrastructure and Transport and the department to resolve the issue.
