2 Percent Tax On Every SIM Card And Recharge

July 29, 2020 | Investopaper

Now, mobile users have to pay 2 percent more tax for every recharge and purchase of SIM card. The Finance Act presented by Finance Minister Yubaraj Khatiwada in the parliament on Jestha 15 had a provision to charge 2 percent mobile ownership fee on every SIM card and recharge card under the title of telephone ownership fee. Telecom service providers have started its implementation from Shrawan 1, 2077.

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Khatiwada, who was criticized for raising the internet tax by 13 percent through the budget two years ago, has also increased the tax on recharge and SIM cards by 2 percent in this budget. Earlier, the tax on this title was fixed at Rs 500 for one time on landline phones and postpaid SIMs. Now, consumers will have to pay 2 percent additional tariff when buying any SIM and recharge card. The one-time ownership fee of Rs 500 for postpaid mobiles has been removed.

Access to mobile services has reached 100 percent of the population, while Internet access has reached 72 percent of the population, according to the Nepal Telecommunications Authority. Of that, 55 percent access is through mobile internet. As per this new provision, 2 percent amount will be deducted as the tax if you top up through Nepal Telecom, Ncell or any other service provider’s recharge card or online.

At the same time, the tax paid by consumers using telecommunication services has reached at least 28 percent.  Earlier, consumers were paying 13 percent telecommunication service fee and 13 percent VAT while consuming telecom services. Now two percent tax has been added.

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