'Govt vows to investigate if ISPs found evading taxes'

By A Staff Reporter

Kathmandu, Jan. 14: Minister for Communication and Information Technology, Prithvi Subba Gurung, has announced an investigation into allegations that WorldLink, an internet service provider, is engaged in tax evasion and capital flight.

During a regular press conference held at the Ministry on Monday, Minister Gurung claimed that telecommunication companies exploiting the government, the country, and the public would face strict action, regardless of their influence. The Minister spoke for the first time about controversies surrounding WorldLink's alleged capital flight through over-invoicing. Reports claim the company transferred over Rs. 11 billion to a Hong Kong-based company named "Iterptus," which has a capital of only one US dollar, over the past 11 years.

Additionally, WorldLink has been accused of illegally distributing content through its holding company for the past nine years without obtaining a broadcasting license, resulting in significant revenue losses for the state. 

Responding to questions about what the Ministry is doing in this regard, Minister Gurung assured necessary actions would be taken.

Minister Gurung also revealed that WorldLink and other ISPs, which initially refused to pay royalties, were compelled by a court order to do so. 

WorldLink has already paid Rs. 2.15 billion, while other ISPs are in the process of payment, with some requesting installment plans. Minister Gurung said that since his tenure began, the Ministry has won five cases from the court related to telecommunications but continues to face legal challenges.

Grant accepted

The Cabinet meeting held on January 10 has decided to accept a grant of Rs. 1.63 billion from the World Bank.

According to Minister Gurung, who is also government spokesperson, said the Cabinet meeting approved the acceptance of an additional USD 12 million in grant aid from the World Bank for the Forest Project for Prosperity. 

Transfer of secretaries 

The government has transferred several gazetted special-class officers under the civil service. The Cabinet meeting decided to transfer secretaries.

Among the transferred secretaries, Secretary Dinesh Bhattarai from the Ministry of Women, Children, and Senior Citizens has been assigned to the Office of the Vice President, Secretary Bharatmani Subedi from the Ministry of Federal Affairs and General Administration has been sent to the Election Commission Nepal, Secretary Suman Raj Aryal from the Ministry of Youth and Sports has been transferred to the Office of the Prime Minister and Council of Ministers.

Likewise, other key transfers include, Dr. Ganesh Prasad Pandey from the Ministry of Culture, Tourism, and Civil Aviation to the Office of the Auditor General, Dr. Krishna Hari Pushkar from the Office of the Prime Minister and Council of Ministers to the Ministry of Labour, Employment, and Social Security, Secretary Ravi Lal Panth from the Election Commission to the Ministry of Federal Affairs and General Administration. 

Other transfers include, Secretary Mukunda Prasad Niraula from the Ministry of Labour, Employment, and Social Security to the Public Procurement Monitoring Office. 

Similarly, Binod Prakash Singh from the Office of the Auditor General has been transferred to the Ministry of Culture, Tourism, and Civil Aviation and Secretary Laxmi Kumari Basnet from the Office of the Vice President to the Ministry of Women, Children, and Senior Citizens.

Meanwhile, the government has forwarded five ordinances for certification to President Ramchandra Paudel, who endorsed them on Monday.  

Likewise, the government has increased the paid-up capital of Citizen Investment Trust to Rs. 6.48 billion, fixed the minimum support price of wheat for fiscal year 2081/82 at Rs. 3,867.38 per quintal, approved revocation of outdated guidelines, canceled directives like the Integrated Market Monitoring Guidelines-2069, and others related to petroleum products and raw material imports.