Nepal Plans Tax and Policy Reforms to Support Gaming and IT Industries

KATHMANDU: Prime Minister Balen Shah has announced plans to introduce tax and policy reforms to make Nepal’s gaming and information technology (IT) industries more competitive in international markets.

In a social media post following a discussion with Nepali game developers and representatives of the IT sector, Shah said the government had begun preparatory work to address challenges facing the industries.

He said several companies had developed games in Nepal that had gained popularity in international markets. Citing the examples of Ludo and Callbreak, Shah said the games, developed by Nepalis, had recorded more than 200 million and 150 million downloads worldwide, respectively.

Shah said the government had invited game developers to discuss the problems and challenges they face. The discussion focused on making game development easier and developing the sector as an industry, he said, adding that work had begun to identify ways to address the issues.

The government also plans to review existing regulations and the business environment to make it easier for companies to establish internationally competitive unicorn businesses from Nepal, according to Shah.

He said the potential for IT products and exports was growing and that Nepali talent and companies needed an environment in which they could earn revenue more easily and reinvest it.

Planned measures include simplifying the tax system, introducing policy reforms and easing existing rules governing international earnings, he said.

Shah also said the government would invest in game jams, startup programmes, hackathons and other activities to develop the gaming and broader IT ecosystem.

His plans also include establishing regular interactions between IT companies and entrepreneurs, Nepal Rastra Bank and the Ministry of Finance.

However, Shah’s public statement did not specify the details, timeline or implementation process for the proposed tax concessions, changes to regulations governing international earnings or other policy reforms.