Kathmandu-Chinese airlines have ignored Nepal’s laws for two years by refusing to register for VAT, are now resisting another mandatory rule.

The government requires every airline that flies to Nepal, or sells tickets here, to appoint a General Sales Agent. Three of the four Chinese airlines flying to Nepal have not complied.

The rule applies immediately to new airlines. Those already operating received a one-year deadline. That deadline ends in Baisakh.

Qatar Airways and Air India have already started the GSA selection process. Chinese airlines have not.

Air China, China Southern, and China Eastern do not have a GSA. Only Sichuan Airlines has one. The rest have complained to both the Civil Aviation Authority and the Ministry of Culture, Tourism, and Civil Aviation.

They argue they already run offices in Nepal. They say appointing a GSA requires approval from China, which they claim is difficult. They have hinted they will not follow the rule.

Ministry officials say it is too early to know what they will do before the deadline. Their signals suggest they will refuse.

‘They told us they do not plan to appoint a GSA. If they break aviation rules, we will take strong action,’ a ministry official said.

The GSA rule came after the AirAsia case. AirAsia left Nepal without clearing its dues. The government wants to prevent similar risks in the future by ensuring a permanent local representative for every airline.

Other airlines have agreed to the rule. The Chinese carriers remain defiant.

They avoided VAT registration and now appear confident they can skip this rule as well.

The government made the GSA rule to ensure airlines can be held accountable for outstanding debts if they stop flying in Nepal.
Chinese Airlines avoid VAT, Government does nothing
Chinese Airlines operating in Nepal charge VAT on tickets but refuse to pay