E-Commerce Directives 2082: CAN Federation Demands Zero API Fees and Tax Rebates for Nepalese Startups

17th January 2026, Kathmandu

The landscape of e-commerce in Nepal is on the verge of a major regulatory shift. As the government moves to formalize digital trade through the Electronic Commerce Directives, 2082, the Federation of Computer Association Nepal (CAN Federation) has submitted a high-impact proposal.

CAN Federation Demands Zero API Fees

Initiated and led by Senior Vice President and ICT Policy Coordinator Chiranjibi Adhikari (also CEO of One Cover Private Limited), the framework aims to transform the regulatory draft from a restrictive document into a catalyst for growth.

The focus has shifted from mere regulation to aggressive fiscal incentives, aiming to make Nepal a digital-first nation by removing the financial barriers that stifle Nepalese startups.

The CAN Federation Vice President Srijana Shrestha, Young E-Commerce Entrepreneur Surakchya Adhikari, Academic Expert Supriti Shakya, Pen Tester Engineer Swagat Aryal, Digital Marketing specialists Sanesh Lohani, and other stakeholders were present.

Zero-Cost Digital Infrastructure: The API Mandate

One of the most significant hurdles for new e-commerce portals in Nepal is the cost of integrating payment gateways. Currently, startups face high setup and maintenance costs from private players.

The CAN Federation Suggestion:

To truly digitize the economy, the government should mandate that API Integration Charges from major providers like Khalti, eSewa, and Fonepay be waived for startups.

The Goal: Integration fees and recurring transaction fees must be zero to encourage every small business to go online.

Government Role: The government should provide tax incentives to these Payment Service Providers (PSPs) in exchange for offering free services to the e-commerce sector.

Tax Rebates for Startup E-Commerce Portals

The current draft of the directive focuses heavily on compliance and penalties. However, the CAN Federation argues that sustainable growth requires “carrots,” not just “sticks”.

Tax Holiday: The federation proposes a significant Tax Rebate period for newly registered e-commerce startups.

Incentivizing Compliance: By offering tax breaks, the government can encourage informal social media sellers to register officially on the Department’s portal, effectively bringing them into the formal economy.

Eliminating Transaction Fees

For consumers to ditch cash, digital payments must be cheaper or at least equal to cash transactions.

The Proposal: The government should subsidize transaction fees so that the end-user and the merchant pay nothing extra for choosing digital over cash.

Policy Shift: Transaction fees should be abolished through a government-backed incentive scheme for banks and PSPs, ensuring that “Digital Nepal” is affordable for the masses.

Simplified “One-Door” API Registration

Instead of manual paperwork and visiting multiple offices, the CAN Federation is pushing for a tech-driven approach to business listing.

Auto-Listing: By using a Unified API with the Office of the Company Registrar, businesses should be automatically listed on the e-commerce portal the moment they are registered, syncing PAN, VAT, and OCR details automatically.

90-Day Window: For small and medium enterprises (SMEs), the federation suggests extending the compliance window to 90 days (up from 35), focusing on a “Technical Support Period” rather than immediate fines.

Key Highlights of the CAN Federation Conceptual Framework

This framework, developed under the leadership of Chiranjibi Adhikari and the CAN Federation’s team of cyber experts, rests on three non-negotiable pillars: Security, Simplicity, and Sovereignty.

Expert-Led Security & Certification

National Minimum-Security Standard (NMSS): The government should introduce an NMSS rather than general data protection rules.

Encryption Mandates: Drawing on professional cybersecurity experience, the framework insists on encryption for sensitive data (passwords, phone numbers).

Independent Certification: Testing and certification of platforms should be conducted by Independent Experts rather than government departments lacking technical specialization.

Collaborative Monitoring & Resolution

Joint Monitoring: Monitoring teams must include representatives from the CAN Federation to ensure fair and informed inspections.

Online Dispute Resolution (ODR): The development of ODR mechanisms will help handle grievances digitally, speeding up the resolution process.

Data Sovereignty

Incentivized Localization: The guidelines should offer tax rebates for companies hosting data in local Tier-3 data centers, ensuring Nepalese citizens’ information remains within national borders.

Conclusion: This framework ensures that the Nepalese digital ecosystem remains secure, affordable, and driven by local innovation rather than just legal constraints. It positions Nepal not just as a consumer of global tech, but as a creator of a secure and competitive digital marketplace.

Federation of Computer Association Nepal (CAN Federation)

Section (Dafa)	Existing Provision / Issue	Identified Problems	Suggestions for Amendment (CAN Federation)
Preamble	Focuses on transparency, security, and consumer protection	Weak focus on promotion, startups, and digital economy expansion	Must explicitly include business promotion, support for startups/SMEs, and digital economy expansion
Section 2	Broad definition of “Businessperson”	Similar liabilities for platform operators, sellers, and intermediaries; lacks clarity on social media trade	Define and assign separate liabilities for different roles; create distinct provisions for social media trading
Section 3	Mandatory listing of all e-commerce firms on the Department’s portal	Entry barrier for small Nepalese businesses, startups, and cottage industries	Implement phased listing based on turnover; enable “Auto-Listing” via a Unified API with the Office of the Company Registrar
Section 4	Requirement for numerous documents like Cyber Audits and Policy Documents	Expensive and complex for small businesses; may encourage informal trade	Set minimum cyber security standards based on risk; allow “Self-Declaration” initially for startups with a preparation period
Section 5	Mandatory listing within 35 days of directive issuance	35-day limit is too short; provisions include harsh penalties for non-compliance	Provide 90 days for listing with initial orientation; use warnings/fines before strict legal action
Section 8(1)	Platforms must keep user details encrypted	Needs more clarity on sensitive vs. general data	Specifically encrypt sensitive data (passwords, phone numbers, DOB); use appropriate measures for general data
Section 8(2)	Immediate business closure in case of unauthorized access or data leaks	Impractical to stop all operations; disrupts buyers, sellers, and intermediaries	Notify the Department, but focus on recovery; ensure regulation does not lead to total business prohibition
Section 9 (1 & 2)	Mandatory digital payments; electronic invoices required for cash payments	COD is still a consumer preference; digital payment mandates may be misunderstood as the only valid form	Continue Cash on Delivery (COD) as a transitional measure; incentivize digital payments through cashback/discounts
Section 9 (3)	7-day limit for refunds/returns if delivery is unsuccessful	7 days is insufficient for all geographical regions and business models	Set 7 days for urban and 10–15 days for rural areas; clarify cost-sharing for returns between parties
Section 10	Prohibition of misleading advertisements	Unclear liability between platform operators and sellers	Clearly define roles; platforms should not be liable for auto-playing ads from unknown third-party sources
Section 11	Inspection and monitoring by multiple government bodies	Creates a burden of cost/time and an environment of fear for businesses	Implement a “One-Door System”; include CAN Federation and Sectoral related association representatives in monitoring teams
Section 12	Grievance resolution within 15 days	15 days may be insufficient for complex disputes	Allow flexibility in the timeline based on the nature of the dispute
Section 13	Dispute Resolution Committee within the Department	Lacks representation from the private sector or business associations	Develop Online Dispute Resolution (ODR); involve CAN Federation or relevant associations in mediation before the Department
Section 15	Ministry to set minimum IT standards and Department to certify platforms	Department lacks necessary certification expertise	Finalize IT standards in consultation with CAN Federation; allow certification by “Independent Experts”
Section 17	Capacity building for Ministry and Department staff	Private sector representatives also need capacity building for secure operations	Include CAN Federation member representatives and staff in capacity-building programs

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