Private internet service provider WorldLink has finally paid off Rs 2.80 arba (Rs 2.80 billion) to Nepal Telecommunications Authority (NTA). The company submitted its payment under the Rural Telecommunication Development Fund (RTDF) and royalty for up to the end of Ashar, FY 2080/81.
WorldLink has now become one of the handful to clear off its dues to NTA for RTDF and royalty. This compliance also keeps it in favor with the authority. Earlier, the company paid Rs 2.15 billion under the same same headings. WorldLink got its new license to operate its internet services after starting to pay off its RTDF and royalty fees to NTA.
Like any ISP, WorldLink provisionally needs to pay 4% in royalty and 2% in RTDF annually out of its revenue to the government. On Jestha 10, 2076, NTA notified WorldLink that it needed to pay the royalty amount. However, the ISP argued that it was unfair that the amount was imposed upon it on support and maintenance and it went to the court on Mangsir 23, 2076.
But after four years on Sunday, Baisakh 30, 2081, the joint bench of SC Judges Hari Prasad Phuyal and Dr. Nahakul Subedi dismissed all 8 writs of WorldLink and ruled that it would have to proceed to pay the amount in RTDF and royalty out of Support and Maintenance services.
Two weeks after the full statement of the ruling came out, the private ISP paid the amount along with applicable fines.
Also read: ISPs don’t charge RTDF and royalty on customers- ISPAN
NTA tough on naysayers
NTA went strict on companies that were hesitant to pay the conflicted dues. Among its actions has been not providing the company with foreign currency recommendations. If you remember, it prevented the ISPs from paying their upstreamers which resulted in an almost nationwide internet shutdown on Baisakh 21, 2081. But putting all these aside, WorldLink can now stay assured of facilitation from NTA for its service operations and continuity.
Santosh Paudel, NTA spokesman, said that WorldLink can now import equipment while also paying their bandwidth vendors.
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The verdict could be a message to all ISPs in Nepal
The verdict on WorldLink and others is a precedent for all the ISPs in Nepal. It underscores a message to other internet service providers that they all must pay their RTDF and other taxes from support & maintenance. So far, internet providers have largely stood against the government over this particular tax. Earlier, NTA spokesman Santosh Paudel said that it had Rs 3.64 billion to collect from nine prominent ISPs in RTDF fees. The verdict strengthens NTA’s position in seeking taxes from ISPs.
As per the Economics Act, ISPs are provisioned to pay 13% telecommunication service charge, 4% royalty, and 2% RTDF. ISPs long argued that these taxes don’t apply under support & maintenance because they are non-communication services. This has long remained the main topic of conflict between the government and ISPs/ISPAN. The Supreme Court’s decision is historic and monumental and swings the case in the government’s favor.
This also represents a likely same verdict for other ISPs who are yet to pay their own. According to NTA, there are other prominent ISPs that have yet to complete their payment to NTA.
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How do you feel about WorldLink paying its royalty and RTDF to NTA? Are you relieved that the ISP will have no difficulty in paying its upstreamers to provide a smooth internet service? Do share your opinion in our comment box below.
