Nepal to close down casinos for tax defaults

The government has started the process to close down casinos in Nepal.

The government has started the process to close down casinos in Nepal that attracts thousands of foreign tourists,mostly Indians,after recommendations from the finance ministry for tax evasions.

Nepal’s Ministry of Tourism and Civil Aviation (MoTCA),which issues operating licences,is preparing to take action against eight casinos following recommendation from Department of Revenue Investigation (DRI).

“We have started necessary procedures to take action against the casinos,” Laxman Bhattarai,spokesperson of MoTCA,was quoted as saying by the Republica newspaper today after the ministry received DRI´s letter.

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The tax investigators recommended the termination of the operating licences amid the reluctance of casino operators to pay royalty dues.

“We have recommended the tourism ministry revoke the licences of eight casinos that have failed to pay the dues worth 30 million rupees ($4.9 million),” an official of the DRI said.

The failure of the casinos to clear tax liabilities within the 35-day deadline,which expired on Friday,forced the DRI to move against the casinos,the report said.

Even though gambling is illegal in Nepal,eight hotels in the capital and two in the popular tourist town of Pokhara run casinos under special government permits that bars local people.

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DRI started the investigation as per the directive of the Public Accounts Committee of parliament.

The DRI has asked the MoTCA to take action against Casino Rad,Casino Venus,Casino Grand,Royal Casino,Anna Casino,Casino Shangri-La,Fulbari Casino and Casino Nepal.

The MoTCA has also prepared a draft regulation to streamline licensing process of casinos as per the directives of the PAC.

Presently,only five-star hotels are entitled to operate casinos on their premises. According to the new draft,licenses would be granted to casinos,not to the hotels as is currently practiced to run gambling,nepalnews online said.

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Last year,Nepal police had arrested the general manager of a casino owned by an Indian national for failing to pay crores of rupees in royalty and taxes and allowing gambling by Nepalese nationals.

Manoj Kumar Subedi,general manager of Casino Tara,operated by Indian “Casino King” Rakesh Wadhwa was arrested from the casino at Hotel Hyatt Regency at Bouddha on the outskirt of the capital.

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