A New Tax On The Internet: Service Providers Must Pay 8% Of The Total Income Annual Fee The government is going to impose revenue and duties on internet service provider companies under a new title. This type of arrangement is included in the draft of the Telecommunication Bill prepared by the Ministry of Communication and Information Technology.
The draft bill released for the collection of opinions and suggestions has proposed network services, internet services, GMPCS, and other types of telecommunication services under a general license. All such internet and network service providers will have to submit an amount equal to eight percent of the total income earned in that year to the authority as an annual fee.
At present, Internet service providers have been submitting revenue to the government under license and renewal fees, rural telecommunication development fund fees, royalties, telecommunication service charges, income tax, VAT, etc. However, if this arrangement proposed in the draft bill is passed into law, the service provider will have to submit revenue under the new heading.
The ministry has publicly asked for opinions and suggestions on the draft. Within the next 30 days, you can send your opinions and suggestions on this by emailing the ministry through info@mocit.gov.np. Click here to download the Draft Telecommunications Bill.