Nepal isn’t the first thing on many gamblers’ minds when thinking about a gambling hub. However, the country has proven many times that the casino business there is quite profitable. In fact, it is too profitable. The reason might surprise you as it has been a thorn in the government’s side for quite a while.
The Nepal casino industry will now have their personal property confiscated if they fail to pay all of the taxes that are due to the government. Now you see the reason for the profits, the taxes have been delayed, or completely disregarded, which obviously, the government didn’t like
The dreaded draft
The Kathmandu Post actually reported about a drafted document which contains some information the casino owners and operators have be end reading since 2014. According to the draft, the government will be receiving the jurisdiction to take away businesses for themselves, if the businesses fail to comply with the regulation and tax laws of the country.
This is not something new for Nepal, as its government had already shown some weakness in terms of casino management when it had to actually shut most of them down for a small period of time in 2014. The reason being, financial violations. But this wasn’t the end of it as they made some changes in the Travel Act legislation concerning casinos this summer.
Already some opposition
The government hasn’t received too much help from the supreme court of Nepal however. As the court announced that the way the government is approaching the issue is quite wrong. They highlighted that pressuring the hotels in which the casinos are residing will not do anything good in terms of getting the taxes that are due. The operators need to bead dressed directly if the project is to be successful. However, this tactic may prove quite hard, because of the elusiveness and law-dodging that the casinos have become capable of.
To better explain the “property acquisition”, let’s get into details and see what levels there will be in terms of repercussions from the government if the hotels fail to comply with the new rules. According to the draft, if the hotels fail to pay all of the tax required from the government, they will lose access to water and electricity, if the taxes are still not paid within a given timeframe they will lose all of their rights to the property. This includes bank accounts and passports of the management staff as well.
A lot of political discussion on the way
However, this is just a draft. There will undoubtedly be a lot of opposition to it, which will automatically make it suffer quite a lot of amendments and adjustments. The Supreme Court of Nepal has already disclosed its standpoint on the whole issue, disagreeing to the approach the government is taking. So right now, all the casinos can do is pull some strings and wait for the outcome.