Government to Take Tax from Youtube, Facebook, Netflix & Other Digital Medias

Madhyabindu Online

The government is levying electronic service tax from the next fiscal year 2079/80. The Fiscal Act 2079 had taken the policy of levying electronic service tax on the transaction price of electronic services provided to the consumers of Nepal by non-residents. In order to implement that provision, the Inland Revenue Department has formulated Working Procedure on Electronic Service Tax (Digital Service Tax), 2079 BS. As per the working procedure, the electronic service tax is being implemented from 1 July 2079 BS. The government is implementing electronic service tax for the first time.

According to Ritesh Kumar Shakya, Director General of the Inland Revenue Department, according to this policy, services including YouTube, Facebook, Netflix, Tiktok, Twitter, Google, online business will be included in the tax. According to Raju Prasad Pyakurel, director of the department, this is the first attempt to bring electronic services under the tax net. This will pave the way for all foreign companies expanding their services in Nepal to be included in the tax net in the coming days. At present, most of the companies are running electronic services without setting up an office in Nepal.