Gaming
Nepali game developers are asking the government to reduce taxes on essential overseas services, improve access to international payments and help unlock Google Play merchant registration for Nepal. The Kathmandu Post published the industry report on Monday, November 9 and updated it at 7:23 am Nepal time. The discussion follows a recent meeting at Singha Durbar between Prime Minister Balendra Shah, game studios and software developers.
Shah subsequently said on November 7 that the government would work on tax and policy barriers affecting gaming and information technology companies, but no tax amendment, foreign-exchange rule or Google policy change has yet been formally enacted.
Developers told the newspaper that payments for overseas servers, advertising and user acquisition can carry a combined burden approaching 30 percent. Teslatech chief Sujan Shakya described the components as 13 percent value-added tax, 15 percent tax deducted at source and a 2 percent digital services tax. Industry representatives argue that these costs reduce the funds available for marketing and product expansion abroad. The figures are the developers’ description of the burden on their transactions; the report does not announce a new tax rate or confirm that the government has accepted their requested relief.
Google Play merchant access is the other central issue. Google’s official Play Console support table currently lists Nepal as supporting developer registration but not merchant registration. Google separately explains that a merchant account and linked payments profile are required to sell paid applications and in-app purchases through Play.
Nepali companies can therefore publish applications, but the unavailable merchant option limits how a locally registered studio can receive revenue from paid content. The developers interviewed by The Kathmandu Post say this leaves many studios relying heavily on advertising rather than purchases of virtual items or extra services.
The debate concerns an industry that has already reached international users. Google Play lists Teslatech’s Callbreak title in the 100-million-plus download band. The Kathmandu Post also reports that Yarsa Labs founder NJ Subedi wants policymakers to distinguish companies that build and retain their own intellectual property from outsourcing businesses that provide services for other firms. Product studios must usually spend on development, cloud infrastructure, marketing and customer acquisition before a game produces sustained income, making access to payments and reinvestment particularly important.
Developers also raised the shortage of growth capital and the difficulty of bringing foreign investment into Nepal-registered companies. They want clearer rules that let product businesses retain and reinvest more of their foreign earnings. Nepal Rastra Bank’s Foreign Exchange Management Department is responsible for foreign-exchange policy, approvals related to investment and measures that facilitate imports and exports of services, which explains why developers are seeking regular dialogue involving the central bank and the finance ministry. Any practical change would still need to emerge through the relevant regulatory or budget process.
Shah’s public response included commitments to review rules and support game jams, startup events and hackathons. Those activities could help teams test ideas, meet collaborators and build technical skills, but they do not by themselves resolve merchant-account eligibility, taxation or access to investment. Google controls its supported merchant locations, while Nepal’s authorities control domestic tax and foreign-exchange rules. Progress would therefore require distinct actions from both the platform and public institutions rather than a single announcement.
As analysis, the importance of the November 9 report is that it turns a broad ambition for a Nepali technology unicorn into a concrete list of industry obstacles: overseas operating costs, limited payment infrastructure, reinvestment rules and scarce growth capital. The strongest verified fact is the current platform gap—Google allows developer registration from Nepal but not merchant registration.
The next material development would be an official rule change, a published tax measure, a formal government-Google engagement or Nepal’s addition to Google’s merchant list. Until then, this remains a documented industry proposal and government commitment to review the environment, not a completed reform or a promise that any particular studio will become a global success.
Source publication date: 2026-11-09; The Kathmandu Post report updated at 7:23 am NPT. Event or reporting period: Industry demands reported on 2026-11-09; government commitment posted on 2026-11-07.
Sources:The Kathmandu Post, published November 9, 2026 and updated at 7:23 am NPT; industry demands and government response · Google Play Console Help, checked November 9, 2026; Nepal supports developer registration but not merchant registration · Google Play official Callbreak listing, checked November 9, 2026; Teslatech title shown in the 100-million-plus download band · Nepal Rastra Bank Foreign Exchange Management Department, checked November 9, 2026; official policy and approval responsibilities
Source: GPT News Feed
