Government-backed telecom company Nepal Telecom (NTC) has been awarded for being the highest-tax-paying company in the country.
Internal Revenue Department (IRD) recognized the telco for its highest Value Added Tax (VAT) contribution in the Fiscal Year 2077/78. The company has received recognition under the same title in 2071, 2072, 2073, and 2078 too.
Ntc managed to be the top tax contributor despite seeing mixed economic results in recent years. Particularly, after the Covid-19 lockdowns, the company saw its revenues go up and down. In FY 077/78, the company’s profit declined by over Rs 2 billion over the previous fiscal year. Despite that, it maintained a healthy financial repertoire compared to other companies.
Ntc started its operation in 2032 as Nepal Telecommunications Corporation. The company transitioned to Nepal Doorsanchar Company Limited (NDCL) on Baisakh 1, 2061. The Government of Nepal is its highest shareholder with a 91.50% stake. The public owns 8.47% shares while the Citizen Investment Trust occupies 0.003% of shares in the company.
The company has evolved into an unchallenged telecommunication giant in Nepal with many services under its wing. The telco also provides fiber internet service NT Fiber and its user base is nearing 2 lakh users.
Top tax-paying companies receive awards
Surya Nepal was this year’s top income taxpayer to the government. It has remained the top contributor since IRD started honoring the companies. Since 2073, the government-owned company has earned the status of the highest-tax-paying company in Nepal. Likewise, Nabil Bank was the major tax contributor from Banks and Financial Institutions. Chhimek Laghubitta was recognized as a major contributor to the microfinance industry. It has received the award 6 times in previous years.
The bank earned the same recognition in 2071, 2072, 2073, 2075, 2077, and 2078. Dabur Nepal was among the top income tax contributor from importers. Although the company led the table for its tax contribution in previous years, this year, Shivashakti Ghee Industry took the pole position among the import-based companies. Nepal Reinsurance Company Ltd. was the highest tax-paying company among the insurance firms. The same company has received the honor before in 2074, 2075, 2077, and 2078.
Similarly, IME is featured among the recipient from the remittance sector. It has repeatedly earned recognition in 2071, 2072, 2073, and 2077 before this year. Taragaon Regency from the tourism industry was a key tax contributor to the government. Manakamana Darshan though was the highest taxpayer from the industry this year. In 2075, 2076, 2077, and 2078, Taragaon Regency received the award from the government for its revenue contribution.
Among the individuals, Bijay Kumar Shah earned the top spot as the highest-income taxpayer. He is the chairman of Jaulakhel Distillery Group. Likewise, Siddhartha Shamsher Junga Bahadur Rana was one of the leading income taxpayers. He has been awarded 6 times in the same category as the top contributor before. Mr. Siddhartha is the chairman of Sipradi Trading Private Limited.
Also read: Fiber Internet Users Surpasses 2.1 Million, WorldLink Leads
Nepal Telecom regularly features as the highest-tax-paying company in Nepal
The company consistently features on the list of the top taxpaying companies in Nepal. The company has 2 crores, 18 lakh, 42 thousand, 3 hundred, and 34 users in telephony service. Likewise, the company has 2 crores, 4 lakh, 73 thousand, 3 hundred, and 75 subscribers. The company remains the most popular choice for 4G broadband with over 1.15 crore subscriptions. Due to its offering of advanced services and introduction of newer technologies, Ntc has been one of the most profitable entities for the government.
Check out: Ntc earns 11 billion revenue in Q1 of FY 2079/80
Mangsir 7 is the day to honor major tax contributors in Nepal.
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