Supreme Court orders casino to pay royalty
1st Jan, 2018 | Tourism Mail Crew
KATHMANDU, Jan 01: By the mutual understanding between Chief Justice Gopal Parajuli and Justice Tej Bahadur K.C, the Supreme Court of Nepal has declared that casino operators have to pay the royalty to the government themselves. An ongoing conflict between Soaltee Hotel and casino operator Recreation Center Pvt. Ltd. regarding this matter has been resolved after the declaration from the Supreme Court.
The Ministry of Culture, Tourism and Civil Aviation along with the Department of Revenue Investigation has sent different letters to Recreation Center regarding the unpaid royalty but the organizer refused to pay the royalty. According to the operator, the responsibility of the royalty should be taken by the 5-star hotels. The organizer issued a writ application to the Supreme Court with the same complaint.
The Supreme Court has ordered that the one who runs the trade and business have the responsibility to pay the tax and royalty himself. If Recreational Center refused to pay the royalty to the government, it is free to hold an auction of the property. The Supreme Court has already issued a notice regarding the auction through the Department of Revenue Investigation.
The Recreation Center had been running their casino with the agreement with different 5-star hotels like Radisson, Shangri-La, Yak & Yeti and Soaltee Hotel. As the Recreational Center had not paid their royalty due since 2062-2063, the government officials have publicized this issue. In between Supreme Court has also stated that the declining industry like Phulbari Hotel situated in Pokhara should be promoted and its responsibility should be taken by the government. As this hotel had issued an application regarding its declining state and requested some amount of discount on its remaining dues. But as per the Supreme Court, the declined industry or establishment should pay all their dues once they are working more profitably.