Kathmandu. The government has introduced Value Added Tax (VAT) on ride-sharing services. With this decision of the government, the travel cost of users using such services will increase.

The Finance Bill for the next fiscal year has proposed to levy 5 percent Value Added Tax (VAT) on ride-sharing operators and service providers associated with the platform. Due to this, you will now have to pay additional tax while using ride-sharing services.

The decision will have an impact on passengers who use ride-sharing services on a daily basis. It is expected that service providers may also be able to adjust fares due to the tax regime.