The Government of Nepal is planning on reducing the tax rate on the Internet to reduce the usage cost for the general public. The Ministry of Communications and Information Technology (MCIT) has launched a study on the basis of reducing the cost of the Internet in Nepal.
Secretary at the Ministry, Hari Prasad Basyal informed that the regulatory body Nepal Telecom Authority has been entrusted with the study of the issues that can be addressed to reduce the price of internet. According to him, preparations are being made to modify the tax range, especially on the internet.
Currently, the same 30% income tax is being levied on the internet and liquor/tobacco industries. In all other sectors, the income tax is only 25%. In addition, 13% TDS (excluding maintenance fee), 10% TDS (Tax deduction at source) on bandwidth payment, 4% royalty income, and 2% income from the Rural Telecommunication Development Fund have to be paid.
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Moreover, 13% VAT is also added to it. Because of this, the ISPs (Internet Service Provider) have been complaining that they have to pay high tax to the government for Internet service.
Stating that the price of the internet has gone up due to this issue, they have been urging to reduce the tax rate. That is why the ministry has now started discussions on this matter.
(Source: TechPana)
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