Ncell pays Rs 14.59 billion in taxes and fees in 9 months, Contributes Rs 357 billion to govt in 20 years

KATHMANDU: Nepal’s largest private telecommunications service provider, Ncell, has contributed Rs 14.59 billion in taxes, fees, royalties and regulatory payments to the government during the first nine months of the current FY 2082/83BS, underscoring the telecom sector’s growing role in supporting public finances and Nepal’s digital economy.

According to details released by the company, Ncell paid the amount under 11 different revenue headings between Shrawan and Chaitra of the current fiscal year.

The company further stated that since its establishment in fiscal year 2061/62, it has contributed a cumulative Rs 357 billion to the state through taxes, royalties, licence fees and other statutory payments over the past two decades.

GSM Licence Fee Largest Contributor

Among the various payments made during the review period, the largest contribution came under the GSM licence fee heading.

Ncell paid Rs 3.29 billion as GSM licence renewal fees during the first nine months of the fiscal year.

The amount appears lower than usual because the company had already made an advance payment of Rs 2 billion in Asar 2082 at the request of the Nepal Telecommunications Authority (NTA).

The payment was made before the annual deadline of Bhadra 15. Industry sources said the regulator requested advance payment while arranging finances related to the purchase of land in Khumaltar.

Under current government provisions, Ncell is required to pay Rs 4 billion (Rs 400 crore) annually, along with applicable interest, as part of its GSM licence renewal obligations.

Telecom Service Charge Exceeds Rs 2 Billion

The company reported paying Rs 2.12 billion as Telecommunications Service Charge (TSC) during the nine-month period.

TSC remains one of the major sources of revenue generated from Nepal’s rapidly expanding telecommunications and digital services sector.

Ncell also paid:

• Rs 1.74 billion (Rs 174 crore) in Value Added Tax (VAT)
• Rs 1.96 billion (Rs 196 crore) in frequency fees
• Rs 1.29 billion (Rs 129 crore) in royalties
• Rs 1.25 billion (Rs 125 crore) in advance tax payments

Together, these five categories accounted for a substantial share of the company’s overall contribution to government revenue.

Significant Contributions Through Customs and Withholding Taxes

Beyond licence-related payments, Ncell also made substantial contributions through customs duties and withholding taxes.

According to the company:

• Customs duties exceeded Rs 1 billion
• Tax Deducted at Source (TDS) payments reached Rs 895.4 million

Additionally, Ncell paid Rs 349.8 million under ownership tax obligations.

The company also paid Rs 270,000 as internet service licence fees to the Nepal Telecommunications Authority.

Nearly Rs 650 Million Deposited into Rural Telecom Development Fund

Ncell reported contributing Rs 649.6 million to the Rural Telecommunications Development Fund (RTDF) during the first nine months of the fiscal year.

The fund is intended to support the expansion of telecommunications and internet connectivity in rural and remote areas of Nepal.

Government policy requires resources collected under RTDF to be used for extending digital connectivity, improving telecommunications infrastructure and reducing the digital divide between urban and rural communities.

Telecom Sector Becoming a Major Revenue Source

The latest figures highlight the increasing importance of Nepal’s telecommunications sector as a stable source of government income.

Industry experts note that revenue generated from telecom operators not only supports regular government expenditure but also provides critical financing for development projects.

As internet penetration and mobile usage continue to rise, telecommunications has emerged as one of Nepal’s most important sectors for both revenue generation and economic modernization.

Digital services now underpin a wide range of economic activities, including:

• Mobile banking
• QR-based payments
• Digital wallets
• E-commerce
• Online education
• Information technology services
• Digital government platforms

Experts say that investment in telecommunications infrastructure creates multiplier effects throughout the broader economy by enabling innovation, productivity and financial inclusion.

Digital Transformation Driving Demand

The expansion of internet access has significantly accelerated Nepal’s digital transformation in recent years.

Government data show strong growth in mobile banking transactions, QR payment systems and digital financial services.

These services depend heavily on reliable telecommunications networks and broadband infrastructure.

Analysts argue that a larger portion of revenue collected from the telecommunications sector should be reinvested into digital infrastructure projects to accelerate Nepal’s digital economy ambitions.

Potential investment areas include:

• High-speed internet expansion in rural regions
• Digital classrooms and online learning systems
• Telemedicine and digital health services
• E-governance platforms at local government levels
• Data centres and cloud infrastructure

Such investments, experts say, would strengthen Nepal’s competitiveness and improve public service delivery.

Ncell Seeks Larger Investment Opportunities

At a time when the company is seeking greater policy certainty for future expansion, Ncell has reiterated its willingness to make significant new investments in Nepal’s telecommunications sector.

Ncell Chief Executive Officer Michael Foley has publicly stated that the company is prepared to invest between USD 200 million and USD 250 million if the government provides a supportive operating environment and long-term regulatory certainty.

Using Nepal’s standard numerical conversion:

• USD 200 million = USD 20 crore
• USD 250 million = USD 25 crore

The proposed investment would focus on:

• Deployment of 5G technology
• Gigabit-speed internet services
• Expansion of digital infrastructure
• Construction of modern data centres

Industry observers believe such investments could significantly enhance Nepal’s telecommunications capabilities, which many studies suggest remain several years behind regional competitors.

Need for Policy Reforms

Despite steady growth in digital adoption, experts argue that Nepal’s telecommunications infrastructure still lags behind neighboring countries.

According to industry assessments, Nepal trails regional markets by approximately five to eight years in several areas of telecommunications technology and infrastructure development.

Stakeholders have therefore called on the government to introduce policy reforms, improve regulatory predictability and encourage greater private sector investment.

As Nepal pursues digital transformation, telecom companies such as Ncell are expected to remain key contributors not only through taxes and regulatory payments but also through network expansion, technology upgrades, job creation and broader economic development.

With cumulative payments reaching Rs 357 billion over the last 20 years and nearly Rs 14.59 billion contributed in the first nine months of the current fiscal year alone, Ncell continues to rank among Nepal’s largest private-sector contributors to government revenue and the country’s evolving digital economy.