The Nepali government has decided to refund the value added tax (VAT) paid by foreign tourists on goods worth more than 15,000 Nepali rupees (US$214.3) at the time of their departure.

The decision, which was made recently according to a Financial Ordinance provision, will come into effect from May 1, The Himalayan Times newspaper on Wednesday quoted government sources as saying.

Any international tourist, who has not been employed in Nepal for the past six months and has not stayed for more than 183 days in Nepal, can claim VAT refund on his or her purchases.

The VAT refund applies only to goods being taken out of Nepal within 60 days of the date of purchase.

The Finance Ministry has directed the Rastriya Banijya Bank, one of the country's leading commercial banks, to open a branch at the Tribhuvan International Airport lounge to provide refund services to tourists.

The ministry has also directed the Inland Revenue Department to provide VAT refund application forms at department stores with immediate effect.

(Xinhua News Agency April 20, 2005)