The government has exempted the royalty levied on FM radio stations and postal registration charge for newspapers.

Finance Minister Dr Ram Saran Mahat told MPs during Sunday’s sitting of the House of Representatives that the government has decided to fully exempted FM radios of the royalty and postal registration and charges on the part of newspapers.

The government had on July 12, when Dr Mahat presented the annual budget for the fiscal year 2006/06, announced to bring down the FM royalty and postal charge of newspapers to 50 percent. Mahat said that the decision would be helpful in making the FM radios and newspapers sustain economically.

The decision comes amidst demands by media rights groups that the government should help sustain the FM radios and local newspapers.

There are 56 FM radios registered in different parts of the country of which over 40 are functional. Growth of community radios in Nepal is considered exemplary in South Asia.