Kathmandu, November 20

Just a couple of days after the government felicitated 15 firms as highest taxpayers in 2018-19 fiscal year, the Large Taxpayers’ Office (LTO) today felicitated Nepal Telecom (NT) as the highest taxpayer, in terms of income tax from telecommunications sector.

Marking the National Tax Day on Sunday, the Inland Revenue Department (IRD) had recognized 15 top tax contributors. However, telecom companies, including NT and Ncell, could not make it to the top taxpayers’ list, even as these firms had topped the chart in the previous years.

Though NT could not make it to the list of IRD’s top taxpayers for last year, the LTO felicitated NT today as the largest taxpayer (based on income tax) among firms under its jurisdiction.

There are 13 tax offices in the Kathmandu valley under the jurisdiction of LTO and NT was the highest taxpayer from the service sector, as per Jhalak Ram Adhikari, chief tax administrator at the LTO.

“The government generally recognises firms and individuals on the basis of income tax they pay, which is why telecom firms could not make it to the list of top taxpayers of IRD for last year,” informed Adhikari, adding that telecom firms could have topped the chart if other taxes, including VAT, excise duty and customs duty, were taken into consideration.

Though Ncell is also regarded as one of the largest contributors of tax to the government, the largest private telecom firm could not make it to the list of both IRD and LTO this time around. As per a report published by Ncell’s parent company, Ncell paid $257 million in taxes last year (4.2 percent of total tax revenue of the Nepali government in 2018). Moreover, domestic sources too have confirmed that Ncell had paid almost Rs 32 billion in taxes to the government last year.

Adhikari clarified that Ncell was not in the race of top taxpayers, as the company did not meet the set criteria for the recognition. “We had set some criteria for taxpayers to be eligible for the felicitation.

The set criteria states that a taxpayer should have paid necessary taxes regularly and on time, does not have pending dues and has submitted all the details sought by the government,” said Adhikari, adding that Ncell was not eligible for the felicitation as it did not meet the standards set for the recognition.

Stating that Ncell is yet to clear its outstanding dues worth Rs 42 billion to the government, Adhikari said that Ncell could be the top taxpayer if it clears all its dues on time.

Ncell had bagged the title of highest taxpayer in two consecutive fiscal years — 2012-13 and 2013-14.