Consumer right activists have welcomed the Restaurant and Bar Association of Nepal decision to scrap 10 percent service charge levied on customers, which had remained mandatory for over a decade.

The National Consumer Forum said the new provision would provide a respite to consumers. “Our main concern is why should the consumers pay additional amount to the restaurants owners when they settle the bills for the service they use,” said Prem Lal Maharjan, president of the forum.

The Restaurant and Bar Association of Nepal since Monday has made the 10 percent service charge—which is typically added to the meal bill—optional for its members.

The service charge was made mandatory in 2007 in a bid to narrow the differences between hotel management and employees when their dispute was at its peak. As per an agreement signed, employees get 68 percent, while the management gets 32 percent of the service charge.

Nepal’s existing labour law is flexible on allowing the restaurant operators collect a service charge for workers. Maharjan, however, said that the Consumer Act and the Constitution stipulate that consumers not be cheated on the pretext of collecting a service charge.

The forum on October 8, filed a writ at the Supreme Court, seeking to scrap the provision of 10 percent service charge. The writ, however, has been pending at the apex court.  Maharjan said they have been receiving threats from a group of unsatisfied workers of the sector after the service charge was scrapped. “Our objective is to protect consumers from unnecessary financial burden,” said Maharjan, urging the government to strictly enforce the minimum monthly salary of Rs13,450 for all workers.