For the fourth time in nine months, the Tourism Ministry has decided to extend the deadline for casinos to clear their royalty dues and obtain new operating licences.
Tourism Minister Bhim Acharya told the Post that at the request of employee unions of various casinos , the ministry decided to extend the deadline by 15 days. “A proposal for extending the deadline will be tabled at the next Cabinet meeting.”
The casinos were given a four-month deadline, until November 21, 2013, to obtain new operating licences after the enforcement of the new Casino Regulation on July 16, 2013. The deadline was extended by four months until March 21, 2014, but was again given a 15-day extension on March 20. However, until the last deadline that ended on Friday, the ministry received just one application from a mini-casino or electronic gaming.
Amid fears the government would take a harsh decision, casinos employees associated with various trade unions on Friday met the tourism minister and threatened to launch a protest if casinos were shuttered, according to a high-ranking ministry official.
“We decided to hear the employees’ concerns as they said a closure of casinos would allow casino owners to flee as many of the employees have not been paid their salaries,” Acharya said, adding this does not mean the ministry has shown leniency on defaulters. “Based on the employees’ commitment that they will make their owners pay the dues and get new operating licences, we decided to offer them an additional time.”
Acharya said if the casinos settled their dues, the government could adopt some flexibility on the royalty and other bills through a discussion.
Under the Financial Bill 2013-14, a casino is required to pay Rs 40 million in annual royalty to the government, up from Rs 20 million earlier. For electronic gaming houses, the payable amount is Rs 30 million. “Besides, we are also flexible on addressing some of the complexities created by the new regulation, as casino is also one of the major products for tourism promotion,” Acharya said. “But they have to pay the dues first.”
Meanwhile, Acharya said the provision of restricting casinos and mini casinos from operating within a distance of 5km from international borders, which were among the concerns raised by mini casinos , does not hold any logic.
However, the government will not be flexible on removing the provision of keeping identity details or visual records of gamblers for at least six months, which the casino operators have sought.
As per the Rule 37 (2) of Casino Regulation 2013, casinos that fail to obtain operating licences in line with the new regulation will have their license automatically cancelled. There are 10 casinos in the country, eight in Kathmandu and two in Pokhara, employing an estimated 3,500 workers. Among them, Casino Grand housed at the Hotel Grand in Pokhara and Casino Shangri La housed at the Shangri La Hotel Kathmandu have been shut.
The casinos have to pay more than Rs 657.66 million in outstanding taxes and royalties to the government.
The issue of casinos came to light after it was found that many of them had been operating without renewing their licences and defaulting taxes since 2006. “It’s surprising why the government is hesitant to take action against the tax defaulters,” said BK Shrestha, president of the Hotel Association of Nepal. “They should be made disciplined,” he said at a press meet here on Friday. Only five-star hotels are allowed to run casinos .
Tourism entrepreneurs said casinos are one of the necessary products of tourism, but they should be regulated.
Source
Tourism Minister Bhim Acharya told the Post that at the request of employee unions of various casinos , the ministry decided to extend the deadline by 15 days. “A proposal for extending the deadline will be tabled at the next Cabinet meeting.”
The casinos were given a four-month deadline, until November 21, 2013, to obtain new operating licences after the enforcement of the new Casino Regulation on July 16, 2013. The deadline was extended by four months until March 21, 2014, but was again given a 15-day extension on March 20. However, until the last deadline that ended on Friday, the ministry received just one application from a mini-casino or electronic gaming.
Amid fears the government would take a harsh decision, casinos employees associated with various trade unions on Friday met the tourism minister and threatened to launch a protest if casinos were shuttered, according to a high-ranking ministry official.
“We decided to hear the employees’ concerns as they said a closure of casinos would allow casino owners to flee as many of the employees have not been paid their salaries,” Acharya said, adding this does not mean the ministry has shown leniency on defaulters. “Based on the employees’ commitment that they will make their owners pay the dues and get new operating licences, we decided to offer them an additional time.”
Acharya said if the casinos settled their dues, the government could adopt some flexibility on the royalty and other bills through a discussion.
Under the Financial Bill 2013-14, a casino is required to pay Rs 40 million in annual royalty to the government, up from Rs 20 million earlier. For electronic gaming houses, the payable amount is Rs 30 million. “Besides, we are also flexible on addressing some of the complexities created by the new regulation, as casino is also one of the major products for tourism promotion,” Acharya said. “But they have to pay the dues first.”
Meanwhile, Acharya said the provision of restricting casinos and mini casinos from operating within a distance of 5km from international borders, which were among the concerns raised by mini casinos , does not hold any logic.
However, the government will not be flexible on removing the provision of keeping identity details or visual records of gamblers for at least six months, which the casino operators have sought.
As per the Rule 37 (2) of Casino Regulation 2013, casinos that fail to obtain operating licences in line with the new regulation will have their license automatically cancelled. There are 10 casinos in the country, eight in Kathmandu and two in Pokhara, employing an estimated 3,500 workers. Among them, Casino Grand housed at the Hotel Grand in Pokhara and Casino Shangri La housed at the Shangri La Hotel Kathmandu have been shut.
The casinos have to pay more than Rs 657.66 million in outstanding taxes and royalties to the government.
The issue of casinos came to light after it was found that many of them had been operating without renewing their licences and defaulting taxes since 2006. “It’s surprising why the government is hesitant to take action against the tax defaulters,” said BK Shrestha, president of the Hotel Association of Nepal. “They should be made disciplined,” he said at a press meet here on Friday. Only five-star hotels are allowed to run casinos .
Tourism entrepreneurs said casinos are one of the necessary products of tourism, but they should be regulated.
Source
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