The government is going to bring the paid personal promotion, influencer marketing or targeted advertising through social media under the scope of tax. In the budget for the next financial year 2082/83, Finance Minister Bishnu Paudel said that the basis of digital service tax has been expanded to bring all types of digital transactions under the tax scope.

In the bill made to implement the government's finance proposal, the definition of electronic services also includes paid personal advertising services and targeted online advertising services. This means that services related to personal promotion, influencer marketing, targeted advertising are included under electronic services. By amending the Value Added Tax Act, 2059, the government has included these services in the definition of 'electrical services'. It is proposed that those providing such services should pay 2 percent digital service tax and 13 percent value added tax.

Currently, non-residents are paying digital service tax on the transaction value of electronic services provided to users in Nepal and the transaction value of data collected from users here. World's biggest social network and information technology companies like Microsoft, Google, Meta, Tik Tok, Adobe, Netflix, Amazon, Apple had paid 41 and a half million rupees in taxes for their transactions in Nepal in 2080/81 till last January. Among the tax payers, one American company alone had a maximum turnover of about 1 billion 31 million rupees, according to the Big Tax Payers Office.