Attorney General's Office Rules Favor Internet Providers on Maintenance Fees, Easing Consumer Burden

The Internet Service Providers Association of Nepal (ISPAN) has asserted that the Office of the Attorney General has made a historic and far-reaching decision towards ensuring affordable and accessible internet in Nepal. The association stated that by resolving the long-standing ambiguity regarding internet tariffs and Telecommunication Service Charge (TSC), the Attorney General's Office provided a legal interpretation that prevents additional financial burdens on consumers. 

With this decision, the obligation for Internet Service Providers (ISPs) to pay additional tax on maintenance fees has been lifted, which the association announced in a press release has greatly aided in protecting the existence of the entire internet industry. The association welcomed the Attorney General's fair decision, calling it a step beneficial to both consumers and the industry. 

Sudhir Parajuli, President of the association, expressed confidence that this decision will further strengthen Nepal's internet sector and solidify the foundation of digital democracy and good governance. According to the existing provisions of the Telecommunications Regulation 2054 and the Economic Act, maintenance fees can be set up to 50 percent of the total tariff for fixed broadband services, and it is clearly stipulated that the Telecommunication Service Charge (TSC) is not applicable to such fees. 

Based on this provision, the Office of the Attorney General has determined that the revenue practice adopted by service providers is entirely legal and policy-wise correct. The association claims that arguments previously raised about imposing additional taxes even on maintenance have proven baseless.