Respected Chairman of this session and Ho. Min. of MOCIT, Panelists, Moderator, international and national delegates, media friends. Good afternoon and Namaste. I am grateful to NIB to give me this opportunity to present the paper about ICT.
In this presentation I am going to present about overview of country and ICT sector including policy and act. And, I will also present about incentives and opportunities for IT industry
We have three tiers of Government ; Federal, provincial and Local. Youth age – 16 to 40 years 66% literacy, 66% Internet penetration, Yearly 7500 IT graduates production, 133% mobile subscription ICT Development index 142 in 2016 which has upgraded to 117 in 2018
E-commerce- Nepbay, Alibaba, Thamel, Muncha Internet Broadband- Worldlink, Subisu, Digital wallet- Esewa, Khalti, Online Ride Sharing- Tottle, Pathao,
Some well established IT companies are VeriSik Analytics, , Deerwalk, LinkTree, e_sewa, F1Soft, Cloud Factory, Fuse Machine
ICT industries can be established in SEZ Park exporting at least 60% of its production
initial 10 years of operation- 100% Income tax exemption 50% tax exemption after above period
Dividend tax Exemption 100% Tax on dividend is exempt- Initial 5 years 50% is exempt for next 3 years (From the date of commencement of operations)
Company registration, tax registration, banking, insurance, freight forwarding, issuance of a certificate of origin for export, and other administrative formalities are provided in these zones through a one window service
Industries established in SEZ Park through Foreign Direct Investment, Incentive of Repatriation 50% Rebate on repatriation of income in the nature of below Management fee or Royalty Technical fee/support
Normal Rate of Tax for telecommunication – 30% , other than telecommunication – 25% Rate of Repatriation – 5%
Concessions Employing equal to or more than 100 Nepalese nationals throughout the year – 10% of tax rebate Employing equal to or more than 300 Nepalese nationals throughout the year – 20% tax rebate Employing equal to or more than 500 Nepalese nationals throughout the year – 25% tax rebate Employing equal to or more than 1000 Nepalese nationals throughout the year – 30% tax rebate Additional 10% concession is provided if direct employment is provided to 100 or more Nepalese citizens including at least 33% of women, oppressed or handicapped person.
Zero VAT rates for raw materials and produced goods supplied to industries operating in a SEZ and for goods or services exported from the industries established therein. Excise Duty - No excise duty shall be levied on the goods to be produced by industries in SEZ Customs duty -Industries within a SEZ are exempt from customs duty for raw materials, auxiliary raw materials, packing materials and products used in the production of exportable goods, if made under bank guarantee facility. - Industries within a SEZ are exempt from customs duty on the import of plant, machinery, instruments, tools and spare parts required for the industry. In case of vehicles, up to 3 are exempt depending upon the scale of industry. - Customs duty is refundable to an importer that sells any goods to an industry within a SEZ.
Some relevant acts and policies are Telecommunication Act, Radio Act, National Broadcasting act ICT Policy, Broad band policy. Some General supporting acts are I. Tax, VAT, Excise, Companies, SEZ and Labor Act.
Some Government Major digital initiatives are PKI, Data Center, Integration Tax System for Income Tax, VAT, Excise Custom automation, Company Registration, public procurement System, Machine Readable Passport, Digitation of Land Records, Driving License
1 Country – 8 Sectors – 80 Digital Initiatives
Impact of Digital Nepal Contribution of Nepal’s GDP US$ 8 Billion Accelerate Nepal’s achievement of SDGs Improvement of citizen’s quality of life
Some of the major digital Initiatives are
National Knowledge Parks Provincial Data Centers Land record management Precision agriculture (Each Province Sample Projects) Smart Traffic Management Waste Management National Cyber Security and CERT Business Incubation Center and finishing schools Digital literacy, online education, distance learning National Digital Healthcare Program National ID and financial service integration Digital signature with all government services digital delivery platforms - PKI Electronic Visa Welcome Nepal website and apps Smart schools Mobile learning centers 5G – Policy intervention National digital payment gateway, national switch (NRB policy) National fiber optics network (Connecting district and local level) Centralized telemedicine center Information management system for migrant workers Development of single window for business & industry promotion National disaster management system Provenance tracking (Product tracking) GEA and NeGIF update to cater larger complex systems E-Governance 2.0
Some ongoing ICT major projects are Single window system for all types of trade facilitation, National ID, Government Cloud, Smart cities, Mid Hill region Information highway Digital Education System imitative by setting up Computer Lab in about 1500 community school in three years
UN E-Government Development Index shows that Nepal is above the LDC average and 2nd highest among 47 least development countries.
Government has made IT as one of the 8 major economic driver for socio economic development of the nation. 41 % youth population, favorable time zone for BPOs and Call centers. Stable Government, attractive incentive and benefits as I already told. And the last important factor is that Nepal is situated between two big economies , India and China.
4 ict sector_mr birendra mishra
BIRENDRA KUMAR MISHRA
Ministry of Communication and Information Technology
1. COUNTRY OVERVIEW
2. OVERVIEW OF IT SECTOR IN NEPAL
3. INVESTMENT POTENTIAL AND OPPORTUNITIES
4. POLICY INCENTIVES ON IT BASED INDUSTRIES
753 LOCAL GOVT
250 NEW INTERNET
LATEST TECHNOLOGY TRENDS IN NEPAL
Online Ride Sharing
INCENTIVE ON SEZ
100 % INCOME TAX
INCOME TAX/VAT/CUSTOMS EXEMPTIONS
REBATE SCHEMES ON
INCOME TAX UP TO 30%
ZERO VAT AND
CUSTOM FOR IT
INDUSTRIES IN SEZ
ZERO VAT AND VAT
REFUND FACILITIES ON
ZERO VAT FOR THE
SERVICES SUPPLIED IN
RELEVANT ACTS AND POLICIES
Income Tax Act, 2002 A.D.
VAT Act, 1996 A.D.
Companies Act, 2006 A.D.
Industrial Enterprise Act, 2016 A.D
Special Economic Zone Act, 2016 A.D
Labor Act, 2017 A.D
Telecommunication Act 1997 A. D.
Radio Act 1957 A.D.
National Broadcasting Act 1993 A. D.
Consumer Protection Act 1998 A. D.
ICT Policy, 2015
Foreign Investment and Technology Transfer Act,
COMPANY REGISTRATION SYSTEM
LAND RECORD SYSTEM
DRIVING LICENSE SYSTEM
PKI/ DATA CENTER
DIGITAL NEPAL PROGRAM
The Digital Nepal Program is
designed to enable to harness its
growth potential by leveraging
disruptive technologies and driving
socioeconomic growth. Impact of
about USD 8 Billion by the program
ONGOING GOVERNMENT PROJECTS
0.3990 0.3989 0.3929 0.3816
NEPAL’S POSITION IN UN E-GOVERNMENT
DEVELOPMENT INDEX OF LDCS (2018)
STATUS OF AUDIO, VIDEO LICENSE
DESCRIPTIONS 2012/13 2013/14 2014/15 2015/16 2016/17 TOTAL
FM Radio 55 71 64 95 75 872
FM Radio Regular Transmission 51 124 18 42 20 627
Television 29 4 11 23 8 124
Television Regular Transmission 1 1 0 5 6 36
Cable Television 54 24 2 0 0 853
DTH 0 0 0 1 1 2
Licenses for Downlink 9 40 29 30 16 150
VHF/UHF Transmitter 137 204 229 182 70 642
Sales and Distribution of Radio
17 23 40 99 12 208
Number of Feature film Censored 222 196 200 216 128 1157
Number of commercial Movies 132 93 99 115 54 637
Foreign Movies Shooting 87 93 108 103 44 517
Source: Economic Survey, 2018. MOF
WHY INVESTMENT IN NEPAL ?
Low labor Cost
Time Zone for