Taxes on Internet Greater Than Taxes on Alcohol and Tobacco

rise in internet tax

Providers of the Kathmandu Service complained that the “taxes on internet greater than taxes on alcohol and tobacco”. Sudhir Parajuli, Chairman of Internet Service Provider Nepal (ISPAN), claimed this in an interaction program conducted at the National Planning Commission hall in Singha Durbar. 

Chairman Parajuli expressed sorrow at the recent rise in the tax burden, saying that the internet service was considered a privilege when it was launched in Nepal. The Internet is not developed as a luxury but as a critical utility,” he said, “but the government has put a heavy tax on internet services that should be accessible. 

According to the chairman , the corporate tax rate is 25 percent in all sectors, while it is 30 percent on the Internet, as in the liquor and tobacco industries. 

There are higher taxes on internet services than on cigarettes and alcohol, together with telephone service charges, VAT, customs fees, TDS, royalties, and the Rural Telecommunication Development Fund. 

Chairman Parajuli, giving a presentation on behalf of internet service providers at an engagement program organized by the Ministry of Communications, said that if the government lowered the tax rate, the service could be more affordable and accessible.