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Finance Ministry Mulls Imposing Tax on Transactions from Social Media

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Finance Ministry Mulls Imposing Tax on Transactions from Social Media
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May 19: The Ministry of Finance has failed to reach to a conclusion on whether or not to impose tax on transactions taking place through social media.

Discussions are underway at the ministry to bring transaction taking place through social media under the purview of tax. However, it is still not certain whether this will be included in the budget or not, according to a highly-placed source involved in drafting the budget for the upcoming fiscal year.

This subject hasn’t been included in the government’s policies and programs unveiled on May 3.

“The process of drafting law regarding the registration of social media and their regulation has already started. New we are discussing whether or not to impose tax on transaction taking place through such medium,” said the source requesting anonymity.

According to the source, the finance ministry is hopeful of collecting good revenue through social media.

It is estimated that the number of social media users including Facebook, Twitter, Youtube, Viber among others in Nepal is more than 10 million. The transactions taking place from these media is outside the purview of tax.  The 56th annual report of the Auditor General had also recommended the government to register these social media and collect tax from them.

 

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