ISPAN Claims Huge Loss In The Internet Service Business In Nepal

Share It On:

24 April Kathmandu, 2020

ISPAN Claims Huge Loss in the Internet Service Business, Demands Relief through Tax Exemption, and Loan Facility. The Internet has become a necessity to connect during the COVID-19 pandemic. With the surge in internet usage during the lockdown in Nepal, it has put more financial burden on Internet Service Providers (ISPs).

Recently, Nepal Telecommunications Authority (NTA) had released a notice for all ISPs urging them to continue internet services even if users don’t pay bills on time. However, the Internet Service Providers’ Association Nepal (ISPAN) sent a letter to NTA in response to the notice. The notice highlights the inability of ISPs to provide continuous unpaid internet services to all customers.

It also states, “It has been reported that the ISPs are providing continuous unpaid internet service to the physically challenged, elderly clients who have no helper at home.”

The ISPs don’t think it is a practical move to continue unpaid internet services for all customers. Although, they have been extending grace periods and encouraging digital payment services.

On April 24, 2020 (Baisakh 12), ISPAN sent a letter to the government through NTA informing about the damage to the internet business due to COVID-19. The letter also mentions that is has become difficult to collect service charges from the customers. The purpose of the letter is to demand relief for the damage caused.

In the letter, ISPAN has demanded a relief package consisting of 12 points from the government through NTA.

Here are some of the points of the demand:

  • The reverse VAT on importing bandwidth and channel subscription services should be reduced by 5 percent and the TDS rate by 6.5 percent.
  • 50% tariff and exemption on the import of goods required to provide internet service.
  • There should be a refinancing facility for loans being consumed by the ISPs.
  • 25% refund on corporate income tax.
  • Waiving the telecommunication service charges for the benefit of the customers.
  • Increase the loan’s interest payment period by three months.
  • Various government agencies must waive the late fee on all kinds of fees and taxes.
  • Provision of loans for six months from RTDF fund at a minimum interest rate to pay for the purchase of internet bandwidth of three months.
  • 50% exemption in the income tax paid by the employees in the current fiscal year.
  • Provision of working capital loans to all ISPs for working capital expenditure for a minimum of six months based on the current investment.
  • Extension of the deadline for payment of RTDF and royalty to 12 months.
  • Provision of exemption for late fees and penalties in the amounts taken by NTA under various topics.

ISPAN Demands Relief Through Tax Exemption and Loan Facility

The ISPs are currently accepting online payments to collect internet bills. They are urging customers to use a digital wallet or other platforms to make payments. Similarly, they are extending the grace periods considering the circumstances of the customers during the lockdown. However, their motive remains to reach as many customers as possible for bill payment

During such difficult times, we would urge people to help their neighbors, families, and friends to pay internet bills through online platforms.

Related Articles

How Internet Usage Has Increased After lockdown?

NTA Urges ISPs Not To Cut The Internet Connection Even If Users Don’t Pay The Bill

How Are The ISPs Industries Providing Services During The Lockdown?

How To Save Your Monthly Internet Bills?

NTA Providing Rs. 16 Billion From Their Fund To Support The Government


Share It On:

Recent Posts

Google Maps AI: Gemini Integration For Enhanced Search and Navigation

Google Maps AI: Gemini Integration For Enhanced Search and Navigation

Share It On:2nd November 2024, Kathmandu Google announced the integration of Gemini, its advanced AI chatbot, into popular map applications,

Merck Announces Emerging Biotech Grant Program Winners

Merck Announces Emerging Biotech Grant Program Winners

Share It On:2nd November 2024, Kathmandu Merck, a leading science and technology company, today announced the winners of its Emerging

Nepal Defeats Australia By 11 Runs in Hong Kong Cricket Sixes 2024 With Pratish GC’s Stellar Bowling

Nepal Defeats Australia By 11 Runs in Hong Kong Cricket

Share It On:2nd November 2024, Kathmandu Nepal continues its winning streak at the Hong Kong Cricket Sixes with an impressive

Nepal’s Historic Win Over England in Hong Kong Sixes

Nepal’s Historic Win Over England in Hong Kong Sixes

Share It On:2nd November 2024, Kathmandu Nepal has made a thrilling debut at the Hong Kong Cricket Sixes, stunning England

Watch Mahapurush Free: A Must-Watch Nepali Movie on YouTube

Watch Mahapurush Free: A Must-Watch Nepali Movie on YouTube

Share It On:1st November 2024, Kathmandu The acclaimed Nepali film Mahapurush, starring the iconic duo Mahajodi (Haribansha Acharya and Madan

Russia Fines Google Two Undecillion Rubles Over YouTube Restrictions on State Media

Russia Fines Google Two Undecillion Rubles Over YouTube Restrictions on

Share It On:1st November 2024, Kathmandu A Russian court has imposed an unprecedented fine on Google, equating to more than