Thursday, July 26, 2018

Government rolls back 13 per cent tax on internet fee

The government today rolled back its decision to raise internet fees by 13 per cent from 11 per cent.
This is the second time the government has rolled back its decision – announced in the budget for the current fiscal year – after West Seti. The government had – against the agreement between the Chinese company and Investment Board of Nepal – in the budget for the current fiscal year claimed to construct West Seti on its own. However, the Chinese government protested claiming that it is going to construct the hydropower project as the agreement has not yet been terminated. The government through the investment board – which has the Prime Minister as its chair – rolled back the decision to construct on its own and reassured China that the hydel project will be constructed by the Chinese company as according to the agreement.
Likewise, the government rolled back the decision to hike tax on internet fee after a meeting between the internet service providers and Ministry of Industry and Communications today.
The internet service providers will not charge additional 13 per cent tax levied by the Nepal Telecom (NT) now, according to the agreement. "They will pay the telecommunications service fee to the government from the amount they have been charging to the customers."
The agreement will be implemented for those customers, who have been taking the service only for home service. The corporate customers, however, still have to pay the 13 per cent tax, though the internet is not the end product and is a tool that could boost the productivity and also profit, which will be returned back to the government. The government will get more benefit, if it decreases the tax than increase.
The government earlier had formed a committee comprising internet service providers, Nepal Telecom (NT) and ministry officials.

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