Govt told to collect capital gains tax from Ncell

Govt told to collect capital gains tax from Ncell

Finance Committee under the Legislature-Parliament on Friday issued an instruction to the Ministry of Finance to seek the capital gains tax (CGT) payment from the telecommunications service provider Ncell.

The Committee meeting took a decision that the company with registration, investment and profit made from transaction within Nepal should pay the capital gains tax in Nepal.

The Committee has called for collecting the tax and is waiting for submission of the related detail, Committee Chairman Prakash Jwala said.

The Committee has also instructed the Ministry of Industry and the Ministry of Information and Communications to forward the company’s commercial plans and proposals including the capital increment only after settling the entire tax related issues.

TeliaSonera had sold Ncell for Rs 143 billion to the Axiata Group. The Ncell company was required to pay Rs 36 billion under the CGT to the government. It has so far paid around Rs 10 billion following a social boycott campaign.

Source: THT