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Nepal Telecom Becomes The Highest Tax-Paying Company In Telco Sector

Mukul Adhikari by Mukul Adhikari
July 27, 2021
in Nepal Telecom, Telco News
Reading Time: 3 mins read
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Nepal Telecom, the government-owned Telecommunication company has become the highest tax-paying company in the telecom sector for the fiscal year 2077/78. 

Read: Ntc Voice packages: Day, Night, Unlimited, All time

Top Tax-Paying Companies in Nepal

In the fiscal year 2077/78, two telecom companies have been included in the list of top three companies paying taxes. Among them, Ncell Axiata is another Telecommunications Company in the list. Nepal Telecom was in second place in the list of the highest tax-paying companies last year. The top tax-paying company in the fiscal year 2077/78, is none other than the multinational company Surya Nepal. Surya Nepal was also the top taxpayer in the previous fiscal year.

In the last fiscal year, Nepal Telecom paid a total amount of Rs. 9 billion in advance income tax and VAT. It is a noticeable decline compared to the previous fiscal year. The company had paid a total of Rs 8.07 billion in income tax and Rs 2.33 billion in VAT in the previous fiscal year.

Also Read: Nepal Telecom’s Revenue Grows By NRs.1 Billion In Q3 2077/78

Reason For Decline in Tax-Amount

The company’s revenue has been steadily declining, as with many telcos globally. It is due to the decrement in the international calls and even the international roaming (inbound and outbound) because of covid-19. Similarly, the increase in the use of over-the-top (OTT) apps like Viber, Messenger, and WhatsApp has put a toll on their revenue/profit. So, the company has stated these reasons for the less revenue and tax payment than the previous fiscal year. Also, Check out Why do Telecom operators loose earnings with COVID Pandemic?

Next up, Ncell, the Private sector telecommunications service provider is the third-highest taxpayer in the 2077/78 fiscal year. The company paid a whopping amount of Rs 8 billion in taxes. It has also paid much less tax than the previous financial year. Ncell had paid more than Rs 33.95 billion in taxes in the previous fiscal year as it had paid capital gains tax (CGT) with the ownership transfer from Teliasonera to Axiata.

Telecom operators need to open up new revenue streams to maintain or improve their health. Apart from adding new technologies, they also need to broaden their range of related products/services in the digital sector for sustainable business.

Don’t Miss: NTA Publishes Drive Test Results for Mobile Network Quality in Kathmandu

We would like to congratulate Nepal Telecom for such contribution to the country, with such huge tax payment. What do you think of Nepal Telecom’s contribution to the economy. Please put your remarks in the comment section below.

Follow us on Facebook, Twitter, and Viber to get the latest news, and information about Nepal Telecom, Ncell, Smart Cell, ISPs, mobile apps, and phones in Nepal.

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Mukul Adhikari

Mukul Adhikari

A Tech-enthusiast/Gadget freak, covering articles on all the latest smartphones, earphones, mobile accessories, more. Loves to travel, watch Tv-series, Anime & Play games.

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