Nepal Government has collected Rs.3.53 billion in royalties from ISPs and telecom operators in the FY 077/78. The rule holds that each service provider is provisioned to pay 4% off their profit in every fiscal year in royalties to the Nepal Government.
As per the ruling, 82 telecommunications service providers paid the fees to the government that totaled above Rs. 3.53 billion. Find out the companies which accounted for the highest amount to the government.
Royalties From Telecom Operators
There are currently three telecom operators which are actively providing mobile communications services in Nepal, the state-backed Nepal Telecom, privately owned Ncell, and Smart Cell. Among them, Ncell took the pole position as the highest royalties payer.
Ncell has paid One Arab, eighty-seven crores, seven lakhs, and thirty-five thousand and five hundred and twenty-eight rupees (Rs.1,87,07,35,528) in total.
Nepal Telecom (NTC) paid one Arab, thirty crores, ninety-three lakhs, thirty-three thousand, and three hundred eighty-four (Rs.1,38,93,33,384). Meanwhile, the financially troubled Smart Cell has not paid its royalties due to its debilitating economic situation.
Among the ISPs, WorldLink paid the highest sum in royalties. The leading ISP of Nepal contributed eleven crores, eighty-two lakhs, and twenty-five thousand (Rs.11,82,25,000).
In the second position, came Subisu, another private ISP to pay the highest royalties. The Kathmandu-based ISP paid Five crores, Seventy lakhs, fourteen thousand (5,70,14,000) for the FY 077/78. Vianet Communications followed at third with three crores, twenty lakhs (Rs.3,20,00,000) in total. As per the NTA records, Classic Tech has not paid its due amount.
The royalties charges ruling is part of 2053’s Telecommunications Act 32 which binds telcos and ISPs within its policy. NTA informed that some service providers had another added 2 percent for payment. As per the act, the service providers are fined another 2 percent in case they fail to pay their royalties in due time.
As per NTA spokesman Santosh Poudel, the authority has collected more than 95 percent of the total royalties for FY 077/78. The large companies have paid in Arabs and crores while small scale ISPs will pay in lakhs.
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