By Our Reporter
Ncell, the private telecommunications service, which has earned a bad name for evading taxes in the past has again been drawn into controversies after Axiata, the Malaysian Company, sold it at mere US $ 50 million (Rs. 6.5 million) to a British Company—Spectrlite UK.
When Axiata sold its 80 per cent of stakes in Ncell at only Rs. 6.5 million while it had purchased the same at Rs. 143 billion (US $ 1.365 billion) in 2016, many have smelt rat.
Moreover, when independent lawmaker Dr. Amaresh Kumar Singh told media that the Ncell was sold in the low rate to evade taxes and Ganga Dahal, daughter and of Prime Minister Pushpa Kamal Dahal facilitated for that taking a big money. When Singh’s video went viral, it has caused a big headache to the government as well as the leaders of the ruling parties, because all of them had involved in corruption in one way or another and they were accused of failing to collect revenue from Ncell in the past.
After Axiata announced its exit from Ncell and lawmaker Singh argued connection of Ganga Dahal in the deal, the Prime Minister on Monday instructed to study the case while called a meeting of the ruling parties on Tuesday to discuss the issue.
Also in a separate statement issued on Tuesday, Minister for Communication and Information Technology, Rekha Sharma, who is also the spokesperson of the government, said the government it would conduct an extensive investigation into the telecommunication company Ncell’s share transactions.
Stating that the government’s attention has been drawn to the case of the share transaction issue, Minister Sharma said that the in-depth study would be conducted into the case to measure its impact on Nepal’s telecommunication sector, foreign investment and government revenue.
According to the statement issued on Tuesday evening, it is imperative to know whether the prevailing legal provision and international norms and methods were followed while transacting the shares of the company by its holding institution, Axiata.
Minister Sharma said in the statement that the government would severely punish all concerned if there were any inappropriate activities, and expressed commitment of the government to protect the interest of Nepal and Nepali people.
Citing the cumbersome tax process and biases of the NTA in facilitating the business of Ncell in Nepal, its holding company, Axiata of Malaysia, decided to exit from its business in Nepal.
Meanwhile, the Inland Revenue Department (IRD) has started an investigation over Axiata’s exit from Ncell on suspicion of possible evasion of taxes by the company.
According to an IRD official, the company has not officially informed the tax offices regarding its exit from Nepali market.
Issuing a statement on Wednesday last week, Axiata Group Berhad announced to put its assets up for sale with the aim of exiting Ncell. The group showed declining revenue out of Nepal based business and blamed ‘current conditions of unfair taxation and regulatory uncertainties for its longer sustainability’ behind the reason for its stepping back.
The exit of the Axiata itself came as big blow to the government which has been urging the international companies to invest in Nepal.
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