Tuesday, August 31, 2010

Casinos owe a whopping Rs 300m to govt

SANGAM PRASAIN
KATHMANDU, AUG 31 -
Casinos operating in the Kathmandu Valley and outside have over Rs. 300 million in dues to be paid to the government as royalty.

There are 10 casinos (eight in Kathmandu) operating in the country, of which, only Casino Venus operating under Hotel Malla has cleared its bills, an official at the Inland Revenue Deparment (IRD) said.

The IRD, after failing to collect royalty from these casinos, has handed over the task to the Department of Revenue Investigation (DRI) recently.

When the DRI called the casino operators to discuss the matter, they asked the department to grant an installment facility to pay the dues, the source said. The DRI had collected Rs. 250 million as a royalty last year.

Rajan Khanal, director general at the IRD said they were feeling uncomfortable in taking legal action against the casino operators as the Tourism Ministry looks after it. “As legal action there are no alternatives but to shut down the casinos reluctant to pay their dues,” said Khanal.

Casino Nepal under the Soaltee Hotel hasn’t paid royalty worth Rs 109 million of the past four years.

Likewise, Casino Fulbari has Rs 60 million as royalty dues. The Casinos have to pay Rs 20 million every year as royalty.

As per the Fiscal Act, casinos should pay the royalty by mid-September every year. “None of the casinos have made a wholesome payment,” said Sishir Dhungana, chief of the IRO -3.

Of the total casinos, seven are operated by the Nepal Recreation Centre, while Valley Link is running Casino Venus and Casino Grand. Casino Royal is under the Gild International.

Casino staffs say that the downfall in casinos is due to the government move of restricting Nepalis’ entry. The restriction has downed customers by about 70 percent. There are over 8,300 employees’ in 10 casinos.

Meanwhile, the MoTCA is planning to introduce a regulation for casinos to

boost tourism earnings. A official at MoTCA said there was no clear regulation to monitor the increasing malpractices in casinos. MoTCA issues the operating licences of casinos but does not supervise and monitor them.

Currently, Nepal Police under the Ministry of Home Affairs has the responsibility to curb gambling-related crimes under the Public Offence Act.

“The police is only responsible for controlling gambling-related crimes inside the casinos,” said Laxman Prasad Bhattarai, spokesman of the MoTCA.



Casinos Unpaid royalties

Casino Nepal Rs 109 million

Casino Anna Rs 68 million

Casino Fulbari Rs 60 million

Casino Shangri La Rs 26 million

Casino Rad Rs 17 million

Casino Grand Rs 10 million

Casino Royal Rs 13 million

Casino Everest Rs 5 million

Casino Tara Rs 6 million

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