Supreme court clears the pending issue of Ncell that allows them to transfer their profit from here. A bench comprising of Justices OM Prakash Mishra and Kedar Prasad Chalise cleared the pending Ncell profit transfer.
Previously Government had restricted the profit transfer citing the Capital Gain taxes (CGT) issue during the Ncell buyout. Ncell also went to the court for clearing the profit transfer hold as it was pending from long time. Now that they say they cleared all the CGT issue, Supreme court decides to let them take all.
The Kathmandu Post writes:” Upholding the interim order issued by Justice Dambar Bahadur Shahi on December 18, a division bench of Justices Om Prakash Mishra and Kedar Prasad Chalise allowed repatriation of profits earned by the telecom service provider in the country.”
Further they write: The government had barred dividend repatriation until the issue of capital gains tax related to the Ncell buyout deal is settled. Stating that obstruction of dividend repatriation would adversely affect the company and its shareholders, the court directed the government authorities not to obstruct the process.
Problem of Ncell profit transfer?
Regarding the problem of the such huge money (known to be 25 billion), Bijayaraj Khanal in Onlinekhabar writes.”25 Billion of Ncell’s profit to transfer from Nepal, to deepen revenue deficit and capital deficiency”.
They say that the huge money transfer would cause pressure in the revenue and financial system of the country. The transfer will deepen the capital deficient problem including foreign currencies in the country.
They also mentioned that it would be great to let them take the money away in installments than one shot. This could ease the situation for not putting much pressure on the economy of the country.