Kathmandu: National Planning Commission (NPC) Vice Chair, Prof Dr Shiva Raj Adhikari, has emphasized the necessity for enhanced clarity regarding the distribution of royalty from radio frequencies under natural resources. In his address to a discussion program organized by the Society of Economic Journalists-Nepal (SEJON), he underscored the importance of distinguishing whether the payments collected are royalties or fees from the use of natural resources.
According to National News Agency Nepal, the National Natural Resources and Fiscal Commission’s member Juddha Bahadur Gurung announced that the Commission has already submitted its report, complete with recommendations on the allocation of radio frequency royalties, to the government. These recommendations adhere to the Constitutional provisions and propose a distribution criteria that allocates royalties based on 30 percent geographical area of provinces, 30 percent BTS towers, 25 percent population, and 15 percent on the number of mobile phone users.
Gurung referenced a 1972 ruling by the Supreme Court in the United States of America that classified radio frequencies as natural resources, thereby permitting the collection of royalties from service providers. He noted that various countries have recognized radio frequencies as natural resources within their constitutions, with significant royalties being generated particularly from the cellular sector.
Commission Secretary Kiran Raj Sharma highlighted the importance of equitable distribution of royalties from radio frequencies across all three local levels. He stated that the Commission’s recommendations are under review by the respective parliamentary committee and are anticipated to be enacted starting the upcoming fiscal year. Sharma pointed out that the revenue from natural resources could significantly support the government amidst resource shortages, particularly aiding local-level budget formulation and allocation.
Additionally, Engineers Khimanand Kandel and Bhuwan Poudel presented a joint report on the distribution of radio frequency royalties. Currently, the government, in collaboration with service providers, collects four percent of their total annual profit as radio frequency royalty. Data from the Nepal Telecom Authority showed that the government received Rs 2.30 billion in fiscal year 2074/75 BS, Rs 3.87 billion in 2075/76, Rs 3.72 billion in 2076/77, Rs 3.52 billion in 2077/78, and Rs 3.52 billion in 2078/79 as radio frequency royalties.
During the event, an electronic book compiled of local and provincial reports on public financial management issues, published by SEJON, was launched. Sixteen individuals were recognized and awarded letters of appreciation for their contributions to the e-book’s publication.