KATHMANDU, August 8: Although three months have passed since the Supreme Court dismissed the petition challenging the Nepal Telecommunications Authority's decision to impose the maintenance tax on internet service providers, the government has yet to collect the outstanding dues of Rs 3 billion.

The Supreme Court dismissed the writ filed by Worldlink Communications, which argued against the tax, on May 12. However, the full text of the court’s decision has not been released, preventing the internet service providers from settling the tax and hindering the government's ability to take action. According to Santosh Paudel, spokesperson for the NTA, while the court's decision was in the government's favour, the lack of detailed text has delayed tax collection. "Once the full text is available, it will be duly notified," Paudel said.

The delay in releasing the full verdict is causing additional interest to accrue on the tax arrears. Paudel noted that interest is being added monthly, and it is preferable for companies to pay as soon as possible. The total amount due, including interest, has now reached approximately Rs 3.5 billion.

With the dismissal of the writ, companies like Worldlink must now pay the tax. A representative from Worldlink stated that the tax will not be paid until the full text is received. "We are not satisfied with the court’s order," the representative said. "We will discuss the terms of payment once the full text is released."

Prior to the court’s decision, internet service providers had been reluctant to pay the rural telecommunication fund and royalty amounts on time. As a result, the government refused to provide foreign currency exchange facility to the ISPs. This issue impacted internet services during the National Information and Communication Technology Day on May 2, when India's Airtel halted bandwidth provision to Nepali ISPs due to non-payment. Following negotiations at the government level, Airtel resumed the service.

After the SC verdict, the internet service providers have no further legal recourse and are now seeking concessions such as installment facilities and interest exemptions. However, government officials have indicated that such concessions are unlikely.

"If the tax had been paid on time, this issue might have been avoided, but the authority has the discretion to make all decisions," said Gajendra Kumar Thakur, joint secretary of the Ministry of Communications. "The ministry will not interfere in this matter."

As of last year, the tax arrears for various companies were as follows:

• Worldlink Communications: Rs 1.253 billion
• Subisu Cable Net Pvt Ltd: Rs 269.7 million
• Vianet Communication: Rs 267.6 million
• Classictech: Rs 237.1 million
• Mercantile: Rs 91.6 million
• Websurfer: Rs 73.3 million
• Pokhara Internet: Rs 33.3 million
• Netmax: Rs 10.9 million
• Techminds: Rs 2.36 million