Additional Charges For Online Payments Made Digital Services More Expensive Nepali Congress Member of Parliament Pratima Gautam has said that the removal of digital payment service providers from the scope of VAT exemption has placed an additional financial burden on the service users.
Speaking in the House of Representatives meeting on Thursday, Member of Parliament Gautam expressed the opinion that digital service providers such as Nepal Clearing House Limited (NCHL), PhonePay, and others were removed from VAT exemption, and digital services became more expensive for consumers.
Noting that NCHL has started imposing 13 percent VAT on transactions with a maximum fee of Rs 8, she said that this has increased the cost of banks and consumers and digital transactions have become more expensive.
He thinks that digital services are becoming more expensive for consumers after additional charges are imposed on digital wallets such as e-services and wallets. Stating that the cost of public services has increased after the addition of VAT even in free government transactions, Gautam said that VAT exemption in digital transactions should be reconsidered.
She also emphasized that the policy of a 10 percent VAT refund should be made effective for consumers.
MP Gautam urged the government to revise tax policies to support a cashless economy.
