According to an ITU report, Nepal levies higher taxes on the telecom services, and that being one of the reasons for the mobile internet data to expensive in the region.
Nepal can be considered as a developed nation in terms of the telecommunications industry, particularly with consideration to mobile phone service. The service has been one of the fastest-growing businesses which have reached the entire nation in less than three decades. As of 2020, there are almost 40 million mobile subscribers in Nepal which is more than that of the entire population. Find the Latest Mobile and Broadband internet penetration of Nepal.
As a result, the country’s IT, Telecommunications, and Digital Infrastructure sector has played a vital role in driving economic development. It has helped in fuelling innovation, driving productivity, and enabling the exploration of new knowledge frontiers. While considering this, Nepal is also listed among the countries with high taxes on telecommunication services. You can also find the affordability of mobile data in Nepal below.
Based on the statistics of 2018, Nepal is one of the ten countries in the world with the highest telecom tax. According to a report called ICT price trend 2019 made public by the International Telecommunication Union(ITU), Nepal falls under the list of countries with high telecommunications taxes.
According to the ITU, Nepali taxpayers have to pay 26 percent tax for making phone calls, using the internet, and consuming other telecommunication services. Countries with high telecommunication tax include Jordan, Brazil, Egypt, and Sri Lanka.
In Nepal, the tax rate is 26 percent based on the 2018 data. Recently, the government has been levying a 13 percent tax in the name of telecommunication service charges (TSC) and 13% as VAT. Due to this, Nepali consumers are paying more taxes as mentioned by ITU. The 13% TSC had been levied upon internet services from the budget announcement for FY 2075/76. As it is already higher as compared to other countries, they should not increase this tax in the upcoming budget.
Countries with a high tax on telecom services
Here is the list of some countries with their tax percentage on telecom services.
| S.N | Country | Tax on Telecom services |
| 1 | Brazil | 40% |
| 2 | Zambia | 33% |
| 3 | Kenya | 31% |
| 4 | Srilanka | 37% |
| 5 | Nepal | 26% |
| 6 | Pakistan | 21% |
| 7 | Bangladesh | 21% |
| 8 | India | 18% |
| 9 | Maldives | 6% |
| 10 | Bhutan | 5% |
Nepal’s mobile data is one of the most expensive in South Asia
Using mobile data without subscribing to the data pack is an expensive task for Nepali users. The reality of losing money automatically after using mobile data is not a new experience for users. Instead, it is an obligation. Find the information on Nepal Telecom mobile data and Ncell’s data packages.
According to the latest report of the International Telecommunication Union (ITU) for the price of mobile data and voice calls, Nepal ranks 111th out of 183 countries in the world. You can find countries at the top of the list that has cheap mobile data. This rank is based on the comparison of the mobile data price with that of the Gross National income (GNI) per capita.
Comparing Nepal’s situation in South Asian countries, Nepal ranks second in the list of countries with the most expensive mobile data in South Asia. Nepal is followed by Afghanistan where mobile data users have to spend up to 9.1 percent of per capita income, highest in the region. In Nepal, users here have to spend up to 2.8 percent of their per capita income on mobile internet. The cheapest mobile data in South Asia is in Sri Lanka with a per capita income of only 0.6 percent.
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Sri Lanka is also leading this rank in the world with 29th position. It is followed by Pakistan at 37th place with 0.7% of per capita, India at 49th place with just 0.9 percent of the per capita. Then comes Bhutan at 68th place with 1.1 percent and Bangladesh at 91st place with 1.9%.
Luxembourg has shifted to the first place for the world’s cheapest country to use mobile data where the per capita investment is 0.2 percent to us mobile data. Similarly, the top countries having the same 0.2% that of GNI are Macao: China, and Poland.
Congo becomes the country with the most expensive mobile data, where users have to spend 61.2 percent of their per capita income on mobile data.
ALSO READ: Nepal rank for Mobile broadband and Fixed broadband speed >>
SAARC countries with mobile data affordability
| S.N | Country | Mobile data price= Percentage of GNI per capita | World rank |
| 1 | Srilanka | 0.6% | 29 |
| 2 | Pakistan | 0.7% | 37 |
| 3 | India | 0.9% | 49 |
| 4 | Bhutan | 1.1% | 68 |
| 5 | Bangladesh | 1.9 | 91 |
| 6 | Nepal | 2.1% | 111 |
| 7 | Afghanistan | 9.1% | 162 |
