Ncell, the largest privately-owned telecom company in Nepal has finally paid an additional Rs. 13.6 billion Capital Gain Tax (CGT) to the government. Previously, the company had paid Rs. 12.8 billion CGT.
Ncell CGT Issue in Brief
- Ncell has been in a controversy for almost a year for not paying the full amount of CGT after the Malaysian Telecom Giant, Axiata had bought 80 percent stakes in Ncell from Swedish Company, TeliaSonera.
- Ncell officially became a part of Axiata on April 12, 2016 after the share buyout at price of $ 1.03 billion. TeliaSonera had sold its major stakes in Ncell to Axiata as a part of its exit strategy from Asian market.
- As per the current law, both the companies, buyer, Axiata and seller, TeliaSonera mutually are required to pay 25 percent of transaction as Capital Gain Tax to the government. Only Rs. 12.8 billion CGT was paid, rest of the amount was remaining.
Axiata that holds the major stake in Ncell paid its due tax to the government yesterday. However, TeliaSonera is yet to pay its part of the tax. Telia says the transaction had taken place outside of Nepal and it is not liable to the pay tax.
The tax was paid to Large Taxpayers’ Office, Hariharbhawan. Chandra Kala Paudel, spokesperson of Inland Revenue Department (IRD) has confirmed about the tax payment.