NCP lawmaker Gurung demands review in SC verdict on Ncell CTG

KATHMANDU, Sept 8: Nepal Communist Party (NCP) Chief whip and lawmaker Dev Prasad Gurung has demanded a review in the Supreme Court’s recent verdict to annul the Large Taxpayers’ Office’s decision to entail Rs 39 billion Capital Tax Gains (CGT) on Ncell.

After the apex court on Feb 6 ordered the Ncell and Axiata to pay the CGT concluding the Swedish company TeliaSonera was not responsible,  the LTO, had assessed the tax amount of the Ncell buyout  and ordered the Ncell to pay the remaining capital gains tax amounting to Rs 39.06 billion including interest and fine within seven days on April 17.

TeliaSonera had sold its 80 percent stake to the Malaysian Company Axiata in April 2016 and had already exited the country. When the LTO had written to the Swedish company to pay Rs 61 billion tax, it had said that the deal was not taxable in Nepal.

However, the Ncell two days before the deadline had moved the apex court challenging the LTO’s tax assessment amount. The SC then quashed the LTO’s decision to impose Rs 39 billion tax on Ncell on August 23.

“The Supreme Court’s decision to nullify the LTO’s tax assessment is incorrect, and thus should be reviewed,” said Gurung speaking at parliament today.

“The SC decision has incurred billions of loss to the state,” he added.

Gurung also argued that the verdict also breaches the SC’s Feb 6 decision.