48 Internet Service Providers Fail to Pay Royalties

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48 Internet Service Providers Fail to Pay Royalties

August 11: The Nepal Telecommunication Authority, the regulatory body of the telecommunication sector, has published a list of 48 internet service providers (ISPs) for not paying the royalty amount and taxes under the heading of the Rural Telecommunication Development Fund.

The authority has issued a notification and asked the ISPs to submit the outstanding amount to be paid to the government by the mid-August in a designated bank account with fines. The ISPs have been instructed to clearly disclose their name and fiscal year for which the amount has been paid.

According to the authority, if the amount is not paid even within the specified period, action will be taken as per the rules.

According to the authority, big internet companies including Subisu, Classic Tech, Mercantile have not paid the royalty amount and Rural Telecommunication Development Fund taxes.

According to the Telecommunications Act, 2053, the service providers licensed by the authority must deposit 4 percent of the total income as royalty and 2 percent of the total income under the Rural Telecommunication Development Fund every year. The NTA uses the amount deposited in the fund for the development, extension and operation of telecommunication services in the rural area as per the policy of government.

It is stated in the notice issued by the authority that despite repeated requests, the Internet service providers did not submit the amount.

According to the report published by the authority in December, 77 internet service providers had deposited more than Rs 1.67 billion. There are currently 128 internet service provider companies and 23 network service provider companies registered in Nepal.

 

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