Fiscal year 2075/76 is not a good year for we customers. Things are going to be really expensive from now onwards. First of all vehicles and smartphones price have risen up due to new excise duty and end of VAT rebate. Further on, the government will be imposing service tax on Internet as well. As per the first federal budget of 2075/76, Finance Minister announced to increase the income tax of internet and telecommunication services.
Following the government’s decision to impose 13% telecommunications service charge on internet service providers through the fiscal budget 2075/76, ISPs are set to raise internet subscription fee for customers effective from 1st of Shrawan 2075 (July 17, 2018). The new income tax will be now 30%. Previously the TSC was only implacable on telephone service providers. Also, the rate is now increased from 11% to 13%.
The telecom service charge is only applicable to the telecommunication operators. So, the service charges for telecommunication services like voice call, internet, SMS and more will increase by 2 percent points. After the provision of new taxation, the telecom/ISPs operators have started promoting their prices exclusive of all applicable taxes.
ISP and consumers are requesting to abolish new imposed TSC but the ministry officials remain reluctant for any change in the decision turning every attempt of the Telecom and ISPs futile. Now the users are on the verge of paying an extra high phone and internet bills in a regular fashion.
According to the current statistics from the Nepal Telecom Authority (NTA), the telephone and mobile phone users in Nepal are more than 38.5 million and the broadband internet users have crossed over 14.35 million. The telecom companies pay about 57% of tax including royalty. And we know that the companies are not paying anything from their pocket. Ultimately, the end consumer will need to pay for everything and this is going to increase the burden on the netizens of Nepal.
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