Last Updated on September 25, 2026
Summary✨
- The Supreme Court dismissed ISPs’ writ petition against a tax assessment, allowing the government to recover Telecommunication Service Charges (TSC) from them.
- ISPs may increase internet prices by 50-100% due to the ruling, which imposes tax liabilities amounting to billions of rupees.
- Service providers claim they must hike prices due to the court’s decision, not by choice, as TSC is collected from customers and paid to the government.
- The price increase could be temporary; once dues are paid, tariffs may return to previous levels over time.
- A coordinated dialogue among stakeholders is essential to ensure internet remains affordable, highlighting its importance for modern communication.
The Supreme Court has dismissed a writ petition filed by Internet Service Providers (ISPs) against a tax assessment. The SC’s decision means the government can now recover Telecommunication Service Charge (TSC), additional charges, and penalties from ISPs. The possible outcome is that your home WiFi’s price could increase by 50-100%, very soon.
Nepal’s leading ISPs had filed a writ petition at the Supreme Court challenging the tax assessment made by the Large Taxpayers Office and the demand notices issued for payment. They had sought an order from the court to annul the tax office’s decision.
But the Supreme Court rejected the ISPs’ demand and ordered the dismissal of the writ petition.
The government to get payment from ISPs after SC decision
The tax office had concluded that ISPs were liable to pay TSC based on provisions of the Telecommunications Act, 2053, the Telecommunications Regulations, 2054, and the Financial Acts applicable from fiscal year 2075/76 to 2081/82.
A joint bench of Justices Abdul Aziz Musalman and Nripdhwaj Niraula recently decided to dismiss the writ filed by the ISPs- Dish Home, Classic Tech, Vianet, and Subisu. The ruling means that ISPs may now have to pay billions of rupees in TSC and related tax liabilities to the government. They were not required to pay previously. That means the service providers had not passed these amounts on to consumers.
ISPs to hike internet price after SC decision?
With the SC making its decision, the chances are higher that ISPs will increase the price of fixed-line broadband internet. Keshav Nepal, Chief Executive Officer of WorldLink, has said that the company has reached a complicated situation where it may have to initiate the process of increasing internet service prices. He said that increasing the internet fare is not voluntary but due to the court’s ruling.
“We are not increasing the price by choice; we are compelled to do so,” he said. “After the Supreme Court recently ruled that the TSC discount we had been providing to customers was unlawful, we have no alternative but to increase the tariff.”
He also shared that TSC is not earned by the ISPs. It’s collected from the customers and paid to the government.
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Internet price will increase by 50 to 100% with SC ruling
After the Supreme Court ruling on ISPs, the companies may increase the internet price by 50% to 100%. That’s because payments for the past fiscal years reach billions of rupees.
But it’s also said that when outstanding dues and tax liabilities are paid, internet tariffs could return to their previous levels or gradually decrease. That means the price hike will be temporary and a solution for the current scenario.
Internet tariffs have been a long-standing debate in Nepal. Even in the past, whenever there were situations of a possible price hike, it triggered extensive debates. Now, the bemusing situation could unfold again, and it’s the customers who are going to be liable for the payment.
The best solution here would be multilateral coordination and dialogue between the government, NTA, ISPAN, ISPs, and all stakeholders. The internet is not a luxury but an essential modern communication tool. The recent Bhotekoshi floods have again proved why always staying online with data or fixed-line internet is important. The internet should be affordable, and every stakeholder must be responsible and logical about it.
