The government is ready to conduct a study on issues relating to tax, service fees, and regulatory provisions in the telco industry.
The Ministry of Communications and Information Technology (MoCIT) has formed a study committee led by the former Deputy Auditor General Ramu Prasad Dotel to study the current situation of telecommunication service providers and internet service providers.
The initiative comes at a time when Nepal’s telecom industry faces diverse challenges. It mostly includes issues related to fees and taxes. In recent years, telecom operators have seen their revenues nosedive. It has remained one of the impediments for telcos to bring 5G network in Nepal. Therefore, the study will aim at identifying key areas that might need to be addressed for the betterment of the industry.
Government to study telco industry situation, tax and fee payment conditions
NTA’s telecom industry study will revolve around license renewal, regulations of tax and fee payments of operators and internet service providers (ISPs). Afterwards, it will prepare a holistic report.
It will also see prospects of amendment in rules pertaining to renewal fees and royalties. The committee will see if service providers can be offered discounts in these payments. Additionally, it will work on a work plan to ensure high-quality and uninterrupted service delivery from telecom operators and ISPs.
The Dotel-led committee has nine members in total. The members include the NTA chairman, the Joint Secretary of the Ministry’s Frequency Management Division, the Joint Secretary of the Administration and Planning Division, the Joint Secretary of the Ministry of Finance, the Director of the NTA, etc.
The study committee gets a 15-day period for its work.
Nepal’s leading service providers have usually demanded that NTA address their concerns. These center around tax, royalty payments, and regulatory obligations. The current study team shall bring definitive conclusions on these topics.
