FY 2080/81 Budget from Digital Rights Lens
Finance Minister Dr. Prakash Sharan Mahat presented the budget for the upcoming fiscal year 2080/81 in the parliament on 29 May 2023. The budget for fiscal year 2080/81 has been announced to be Rs 1.751 trillion, with a specific allocation of Rs 8.71 billion for the Ministry of Communication, Information, and Technology (MoCIT).
The budget speech outlines various plans and programs relating to ICT. These include initiatives like expanding ICT fiber connectivity in all local levels and expansion of 4G networks, constructing an IT park and data center, implementing a 2% digital service tax, establishing a National Cyber Security Center, regulating social media and digital platforms, introducing QR code payments for government services, digitizing customs processes and land-related administrative works, and promoting digital literacy. The government also aims to digitize public libraries, improve the Nagarik app, and implement the Digital Nepal Framework for digital transformation.
However, despite the government’s focus on information and technology, some ICT-related plans mentioned in the budget speech have raised concerns about their potential impact on the digital rights of Nepali citizens.
- 15% Excise Duty on SIM cards
Starting next fiscal year, the government will impose a 15% excise duty on SIM cards and memory cards, with a 10% duty on smart cards. Digital and video camera recorders will be subject to a 5% excise rate. The Nepal Telecom MIS report highlights that a majority of Nepalis rely on mobile broadband for internet access. The 15% excise duty on SIM cards will increase subscription costs, potentially impacting the accessibility of internet and telecom services.
- 15% Tax on Fiber Cable Imports
Starting from FY 2080/81, the government will increase the tax on fiber cable imports from 10% to 15%. This 5% increase will be effective from Shrawan 01, 2080 BS. The decision to impose an additional 5% tax on fiber cable imports may result in service providers raising service charges to offset the transaction costs. Ultimately, it could be the end customers who bear the financial burden.
- Registration of Unregistered Phones to MDMS
The government has introduced new measures to facilitate the registration of unregistered phones to the Mobile Device Management System (MDMS) through the budget. Owners of unregistered phones will have the opportunity to register their devices in the MDMS until the end of Ashar, 2080 BS. Under this arrangement, one can register the phone paying Rs 10,000 per unit for phones above 1 lakh and new iPhones, Rs 3,000 per unit for midrange Android phones (< 1 lakh), and Rs 200 per unit for feature phones.
The budget includes several commendable plans and programs aimed at promoting digital rights in the country. However, certain provisions, such as the 15% excise duty on SIM cards, the tax increase on fiber cable imports, and the registration fees for MDMS, pose a risk to digital rights and contradict the government’s overall goals. The higher tax rates and registration fees will increase the costs of internet services and make mobile devices more expensive, creating barriers to accessibility and affordability. Additionally, raising taxes on fiber cables while prioritizing broadband expansion raises concerns about the coherence of these policies. It is important for the government to reconsider these measures to ensure that digital rights are protected and that digital services remain accessible to all citizens. |
|
|
Nepal and India Forge Inter-Country Digital Payment Alliance
Nepal and India have officially entered into an inter-country digital payment agreement. This landmark agreement was signed during the visit of Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India on 1 June 2023, marking a new era of financial cooperation between the two nations.
The agreement enables Nepali citizens to conduct digital payments seamlessly in India, while Indian citizens can make digital payments in Nepal using QR code scanning through digital wallets and mobile banking. This move aims to enhance convenience and foster economic integration between the neighboring countries.
FonePay and LankaPay Collaborate for Interconnected Payment Systems
FonePay, Nepal’s payment network, has entered into a Memorandum of Understanding (MoU) with LankaPay, the national payment network of Sri Lanka. This strategic partnership aims to develop interconnected payment systems between the two countries, facilitating seamless digital transactions for users. This collaboration will greatly enhance convenience for citizens of both country, enabling them to make cross-border payments effortlessly through any network app within FonePay or LankaPay to merchants affiliated with either network.
NT Emerges as Nepal’s Largest Taxpayer, While Ncell Faces Revenue Decline
Nepal Telecom (NT) has emerged as the leading income tax-paying public company in Nepal for the fiscal year FY 2078/79 BS, contributing 5.59% of its earnings to the government, according to the Ministry of Finance’s State-Owned Enterprises Preliminary Evaluation report. This achievement marks NT’s fifth consecutive year of profitability, underscoring its significant contribution to the country’s economy. In contrast, private sector telecom company Ncell Axiata Limited, with foreign direct investment, has experienced a notable decline in revenue, earning the lowest revenue in the past eight years, attributed to factors such as a lack of data growth, decreasing revenue from voice services, and a low interconnection rate.
MoFA Website was inaccessible on the Day of Prime Minister’s departure
On the day of the Prime Minister’s official visit to India, the website of the Ministry of Foreign Affairs (MoFA) encountered technical difficulties, rendering it inaccessible. The problem was initially identified at noon on May 31, 2023. The timing of this issue is unfortunate as the ministry’s website serves as a primary platform for disseminating information related to the Prime Minister’s trips. In response to inquiries, the spokesperson for the Ministry of Foreign Affairs acknowledged that the unavailability of the website was attributed to server issues. It is worth noting that, at the time of writing this piece, the website was functioning properly.
NTA Urges Community Schools to Coordinate with Local Levels for Internet Connectivity
The Nepal Telecommunication Authority (NTA) has issued a notice urging community basic schools across the country to establish internet connectivity in coordination with the local levels. This directive comes as part of the Rural Telecommunication Development Fund program, which oversees the implementation of internet connection and management activities in community schools nationwide. Under this program, a Memorandum of Understanding (MoU) has been signed and put into effect with the relevant local levels, to facilitate broadband internet services in all community basic schools.
|
|
|
Alert!!!
Google Play Store Infected with Spyware: Urgent App Removal Required
According to recent reports, Google Play Store is facing a concerning situation, with over 100 spyware-infected apps still in use by millions of unsuspecting users, having been downloaded more than 400 million times. These apps claim to offer daily rewards through a spinning wheel mechanism. The root cause of this issue is a newly discovered malware, masquerading as a software development kit (SDK) for advertisers. As per research conducted by Dr. Web, a cybersecurity firm, the spyware, named ‘SpinOK,’ has been identified in more than 100 Android apps. This malicious software operates by stealthily harvesting personal data from smartphones, and alarmingly, it can transmit the stolen information to a remote server. C heck the list of infectious apps and remove it from your system immediately.
|
|
|
“Data Protection in Nepal: Regulation, Challenges and Way Forward”
On 28 May 2023, an interactive dialogue on “Data Protection in Nepal: Regulation, Challenges, and way forward” was jointly organized by Digital Rights Nepal, Amnesty International Nepal, Freedom Forum and Federation of Nepali Journalists to mark the Amnesty Day in Nepal. During the event, Santosh Sigdel, Executive Director, Digital Rights Nepal, delivered a presentation focusing on the laws and practices concerning data protection and privacy in Nepal. For more information about the event, please refer to the report. Additionally, the full record of the session is available here for viewing purposes. |
|
Second Edition of yIGF Nepal Held Successfully
Youth Internet Governance Forum Nepal (yIGF Nepal) successfully hosted its second edition on May 29, 2023, emphasizing the event’s commitment to shaping a future where the internet is open, inclusive, and safe. With the focal theme of “Empowerment of youth for an open, inclusive, and safe internet,” the forum aimed to integrate the concerns of young people into the realm of internet governance while empowering them to actively participate in policy-making processes. Through engaging discussions, the youth exchanged ideas and explored methods to foster a secure, inclusive, and empowering internet accessible to all.
Digital Rights Nepal(DRN) also supported the event, emphasizing the collaborative efforts required to address the challenges of the digital age.
|
|
|
|
Digital Rights Weekly is a week-based update on Digital Rights and ICT issues, that happened throughout the week, compiled and analyzed from the digital rights perspective by Digital Rights Nepal (DRN). DRN is a not-for-profit initiative dedicated to the protection and promotion of digital rights, including the right to online freedom of expression and association, online privacy, access to information, and related issues such as internet governance, cyber laws/policies, and cyber securities in Nepal.
|
|
|
|
