Impose tax on social networking sites: OAG

Kathmandu, April 13 (RSS): At a time when 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.

Even the telecommunications service providers have been bearing loss owing to growing use of social networking sites in the recent years. Growing penetration of internet has also ensured the use of social networks as Facebook and twitter.

Facebook, Viber, Messager, Skype, Instagram What’s App, We Chat, IMO are some popular apps in Nepal. The report of the Office of the Auditor General has pointed out that these applications did not 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 tax- paying sectors, but evading it.

As the information and advertisements are boosted on these social networks, huge amount is being flowed out. Even the trade and advertisement done via international e-commerce has caused loss to Nepal’s revenue. The transaction made via international electronic media with the use of Credit Card is contributing to this loss to the country. The government therefore has been recommended by the OAG to bring into these sectors into the tax net.

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