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Telephone and Internet Costs Likely to Increase

Telephone and Internet cost are expected to increase in Nepal as certain points in the federal budget for 2075/76 have come to light.

Why it matters:

  • According to the budget, the income tax for Internet Service Providers (ISP) and telecom service providers has been increased by 5%, making it 30%. The service charge on telecom operators has also been increased by 2% making it 13%.
  • These increases lead to hike in telephone and Internet costs, which in turn will make access to the services difficult. It could be contradictory to what the government had planned, which was to increase Internet penetration.
  • The telecommunication service cost in Nepal is already one of the highest in the South Asian region.
  • However, some officials of the NTA are not certain that the increase in the taxes will lead to increase in the cost of telecommunication and Internet services, as taxes are not the only parameters that determine the cost.

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