At a time while the government has been advocating for bringing the social network under the tax net, the Office of the Auditor General has asked the government to impose a tax on social networks.
Actually, the telecommunications service providers have been bearing loss due to the increased utilization of social networking sites in recent years. Growing penetration of the internet has also made sure the use of social networks as Facebook and Twitter.
Facebook, Viber, Messenger, Skype, Instagram What’s App, We Chat, Emo are some popular apps in Nepal. The report of the Office of the Auditor General has noted that these types of applications failed to pay tax to the Nepal government while in use. The use of such applications has resulted in the decline of the income of the telecommunications service providers.
The social networking sites fall under the taxpaying sectors however evading it. As the information and advertisements are boosted on these social networks, a large amount will be flowed out. Also, the trade and advertisement done through international e-commerce have caused loss to Nepal’s revenue.
The transaction generated by means of international electronic media with the aid of Credit Card is contributing to this loss to the country. The government, therefore, has been suggested by the OAG to bring tax net into these sectors.share on