Government to deny registration to casinos that have avoided paying royalties

7th May, 2018 | Tourism Mail Crew

KATHMANDU, May 07: The government will be denying registration to the casinos that have not paid royalties to the government. Casinos have been avoiding paying the necessary royalties to the government, even using one permit to operate multiple casino establishments. The government will be denying registration to such casinos to discourage similar practices.

The Tourism Department decided to make such a move after the Office of the Auditor General produced a report about large amounts of unpaid taxes by such establishments. The Tourism Department has informed that it will deny registration to casinos unless they pay all outstanding dues.

Director General of the Tourism Board, Dinesh Bhattarai, said "we have already started correspondence with the casinos to pay the dues.

The 55th report of the Auditor General stated that in one instance, one permit had been used to operate four different casinos, and large amount of taxes had been evaded by such practices.

According to Article 17 (1 and 2) of the Finance Act 2074, permits for games that require machines (casinos) can only be used for one location per permit. Rock International Pvt. Ltd was found to be operating casinos in four locations on the basis of one permitt.

According to the confidential report by the Office of the Auditor General, the casino permit of CNG Central Media Pvt. Ltd. had been illegally used by Hotel Opera of Mahendranagar, Hotel Bhiswa of Birgunj, Hotel Ratna of Biratnagar, and Hotel Platinum of Kathmandu to operate casinos.

According to Rule 12 of the Casino Manual, 2070, a casino permit is valid for the period of one economic year, while Rule 13 states that registration must be done 1 month before the existing permit expires.