Last Updated on January 9, 2025
Telco authority Nepal Telecommunications Authority (NTA) has requested internet service providers (ISPs) to pay their royalty and RTDF fees by the end of Poush, 2081. The authority referenced Telecommuncations Regulations, 2054, rule 24 urging all service providers to comply and pay off their federal fees.
Releasing a notice, the authority told all the applicable telecom and ISPs to pay their arrears to NTA. According to the provision, all the licensed telecom service providers need to pay 4 percent in royalty and 2 percent in RTDF of their annual revenue to NTA.
In its notice, NTA also explained what total annual revenue means. The Rule 26 in the Telecommunications Regulations, 2054 BS defines “total annual income” as the income received by the licensee (service providers) for providing telecommunications services, excluding deposits taken by the licensee from customers, service tax, value added tax and other indirect taxes, and the amount received from the sale of telecommunications-related equipment.
Prior to this, there was long debate about tax on telecom services. Service providers and NTA has remained in conflict over the imposition of telecommunication service tax. Regarding the fees, NTA utilizes royalty and RTDF to invest on broadband projects, service expansion and promoting digital inclusion.
Also, check out the benefits of RTDF mid-hill optical fiber project
NTA tells ISPs to pay their remaining royalty and RTDF fees by Poush, 2081
In its latest notice, NTA stated that some ISPs and email service providers didn’t pay their dues as in the provision. The authority mentioned that the didn’t calculate their total income and didn’t pay their dues from their revenue generated from operation, sale and distribution of internet services, maintenance and other expenses.
NTA also said that the Supreme Court has also clarified the meaning of total income for service providers on a writ petition. So, it again called on applicable ISPs to pay their entire royalty and RTDF within Poush, 2081.
At the same time, the authority has also requested them to register vouchers and receipts at NTA and inform it.
