No More 10% Service Charge in Restaurants of Kathmandu, Pokhara and Sauraha. Image Source: First Time Buyer Magazine

No More 10% Service Charge in Restaurants of Kathmandu, Pokhara, and Sauraha

The restaurants in Kathmandu, Pokhara and Sauraha no longer have to be paid with 10% service charge. The Restaurant and Bar Association of Nepal (REBAN) has decided to dismiss the 10% service charge that is being charged to customers.

The customers were obliged to pay additional 23% charge for what they eat in restaurants and other diners i.e. 13% VAT (Value Added Tax) and 10% service charge. Dismissing the 10% service will help out many customers with their financial issues.

The President of REBAN, Pramod Kumar Jaiswal stated, “The service charge provision has been scrapped keeping in view the financial pressure at eateries for the customers. We expect that this decision will not only benefit customers but will also help the restaurant business to grow further.”

With no more service charge to be paid in the restaurants will help in the progress of tourism in tourist destinations like Pokhara, Kathmandu, Sauraha, and many other beautiful destination spots of the nation.

The new sharing structure of the 10% service charge had not only increased workers’ share but has also made the three trade unions its shareholders. As per the new service charge sharing structure, workers had been getting 72% of the 10% service charge and the three trade unions had been getting 1% each. Of the remaining 25%, licensees had been getting 23% of the service charge while Hotel Association Nepal had been getting 2%.

However, the trade unions are against the decision of REBAN to cancel the service charge quoting that the decision was made without consulting the trade unions.

Reference: The Himalayan Times

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