MOCIT’s Drive for New Laws: An Overview of Ongoing Initiatives
The Ministry of Communications and Information Technology is actively involved in
the process of enacting 14 new laws and amendments. This includes nine bills, four amendment bills for existing regulations, and one regulation. The Information Technology Bill, which was previously returned from the parliament, is being discussed again after incorporating suggestions from the Department of Information Technology. Nepal Media Council Bill is also under discussion following the recommendation report from the Mass Communication Sector Reform Committee.
Additionally, Telecommunication bill, draft Telecommunication Infrastructure Regulations 2080, Cyber Security Bill, drafted by the Nepal Telecommunication Authority, are undergoing discussions at the Ministry of Communications. Further, the National Broadcasting (Twelfth Amendment) Regulations, 2080, and the Advertisement (Regulation) (First Amendment) Rules, 2080, have progressed to the Ministry of Communications after receiving consent from relevant authorities. Similarly, the Property Management (First Amendment) Regulations, 2080, pertaining to de-licensed telecom service providers, is awaiting approval from the Ministry of Finance after receiving consent from the Law Ministry.
MOICS Tabled E-Commerce Bill
On June 27, 2023, the Minister for Industry, Commerce, and Supplies tabled the e-commerce bill in the National Assembly (upper house) of the Federal Parliament. The bill is currently under review by the DRN. A comprehensive analysis of the bill will be featured in the upcoming newsletter. Stay tuned!!!
MOCIT Minister Unveiled Plans to Enhance Telecom Sector
Minister Rekha Sharma, during a discussion in the House of Representatives, unveiled the government’s plans to enhance telecom services in Nepal for the upcoming fiscal year, including the commercial expansion of 5G services. The government aims to enhance voice and data usage while reducing costs for consumers in collaboration with telecom service providers. Measures will be taken to increase the co-use of telecommunication infrastructure, attract investor capital, and maintain urban aesthetics. The installation and operation of satellites will align with the Satellite Policy- 2077 BS. A new frequency policy will be developed to improve service and revenue by effectively utilizing limited resource frequency and promoting the distribution of new frequencies.
As per the plan, the government data center will also be upgraded to serve as a disaster recovery center, while private sector data centers will be regulated and categorized. The integrated website management system will be expanded to ensure uniformity across all government agency websites, improve information accessibility, and reduce website-related expenses. Additionally, a web monitoring system will be introduced to address cybersecurity risks on these websites. The Minister emphasized the formulation of an electronic data security policy to enhance the security, storage, and usage of electronic data, according to the Government.
Legal Barriers Hinder Starlink’s Entry into Nepal
Starlink, the satellite internet service of SpaceX, led by Elon Musk, faces obstacles in entering Nepal due to legal restrictions. The country’s laws currently prohibit cent percent foreign direct investment and require customers to obtain licenses for satellite frequency. As a result, Starlink’s launch in Nepal, initially planned for 2023, has been delayed for at least a year. The company had engaged in discussions with Nepal Telecommunication Authority representatives to address the licensing and foreign investment regulations. However, existing policies mandate that foreign companies must have at least 20 percent Nepali investment in such projects.
Nepal Facilitates Tax Payment for Foreign Digital Service Providers
To enable seamless tax deposition in US dollars, Department of Internal Revenue has opened a separate account in Nepal Rastra Bank for foreign digital media companies, such as Facebook, Google, and TikTok, offering digital services to Nepali consumers. Non-resident companies providing electronic services to Nepali customers will be subjected to a 13 percent Value Added Tax (VAT) and 2 percent Electronic Service Tax (DST) on their transactions. The government has incorporated provisions for electronic service tax payment in the current fiscal year’s budget and introduced a separate Procedure on Digital Service Tax. Additionally, LinkedIn has registered to pay the digital services tax (DST) in Nepal, following the footsteps of global IT giant Google.
Government Warns Against Unauthorized Advertisements on Foreign Channels in Nepal
The Nepali government has issued a warning against broadcasting advertisements on foreign channels and channels operating without proper downlink permission within the country. The Department of Information and Broadcasting released a press statement urging the immediate shutdown of such channels, as they are violating regulations by broadcasting foreign advertisements without authorization. Despite the enforcement of Clean-Feed in Nepal, viewers have reported that certain service providers continue to broadcast unlicensed channels. To address this issue, the department has cautioned legal action against non-compliant operators.
