The Finance Committee under Legislature-Parliament has directed the government to stop leading telecommunication service provider Ncell from expanding its business including capital increment.

A meeting of the committee held at its Singha Durbar office on Friday issued the directive to the government untill Ncell pays its dues on capital gains tax (CGT). 

The committee ordered Finance Ministry to collect CGT on the shares transaction of Ncell and to inform it after the collection. It has also instructed Industry Ministry to halt the activities of Ncell including business expansion and price rise.

Ncell Managing Director Simon Perkins was summoned at the meeting where he was inquired about current Ncell affairs, it has been learnt.

Malaysia’s Axiata in April bought Reynolds Holding, which held a majority stake in Ncell, from Swedish-Finnish Company TeliaSonera at an enterprise value of $1.03 billion. Reynolds Holding was TeliaSonera’s wholly-owned subsidiary, registered at Saint Kitts and Nevis, a tax haven.

Ncell was dragged into controversy after it refused to pay capital gains tax on the transaction.

It has so far paid around Rs9.96 billion as tax deduction as source (TDS), claiming the amount is 15 of the 25 percent of the CGT.