Nepal E-Commerce Bill 2081: Registration, Protection & Taxes
19th February 2025, Kathmandu
Nepal’s House of Representatives has unanimously passed the E-Commerce Bill 2081 to regulate online trade. The bill mandates that all e-commerce businesses must register before operating.
Nepal E-Commerce Bill 2081
It also strengthens consumer protection by introducing strict monitoring measures. Additionally, social media-based transactions will now be subject to taxation.
Bill Presented for Discussion
During Tuesday’s parliamentary session, Minister for Industry, Commerce, and Supplies, Damodar Bhandari, proposed discussions on the bill along with the report from the Industry and Commerce and Labor and Consumer Welfare Committee. After deliberations, the bill was presented for approval. Speaker Devraj Ghimire announced its unanimous passage.
Key Provisions
Mandatory Registration: All online businesses must register before operating.
Consumer Protection: Strict monitoring will prevent fraudulent activities.
Taxation of Social Media Sales: Transactions via social media platforms will be brought under the revenue system.
Regulatory Oversight: Government agencies will ensure fair trade practices.
Legislative Process and Next Steps
The bill was initially registered in the National Assembly on Asar 12, 2080 (June 26, 2023) and passed by the upper house on Kartik 16, 2080 (November 2, 2023). After almost 16 months, the House of Representatives approved the bill with amendments to make it more consumer- and technology-friendly.
The bill now returns to the National Assembly for final review. If the upper house agrees with the amendments, it will proceed to the President for authentication. Once signed, it will be enacted as law.
Why the Bill Matters
Former Industry Minister Ramesh Rijal originally introduced the bill, emphasizing the growing need to regulate Nepal’s digital marketplace. He highlighted the rapid expansion of e-commerce and the challenges of managing online trade without a legal framework.
“E-commerce boosts employment, strengthens supply chains, encourages exports, and supports small businesses,” Rijal stated. “A structured legal system is essential for reliability and consumer confidence.”
Impact on Nepal’s Digital Economy
With digital commerce rapidly expanding, this bill is expected to create a secure and well-regulated marketplace. Consumers will receive greater protection against fraud, and businesses will benefit from a clearer legal structure.
The approval of E-Commerce Bill 2081 marks a significant step toward modernizing Nepal’s trade sector. Once enacted, the law will provide clarity, accountability, and growth opportunities in the evolving digital economy.
E-Commerce Bill Passed by House of Representatives: A Flawed Move That Threatens Nepal’s Digital Economy
The House of Representatives has passed the E-Commerce Bill, but rather than being a progressive step forward, it has left stakeholders in shock. The bill, which seems incomplete and impractical, imposes stringent penalties, including imprisonment of 6 months to 3 years and fines ranging from NPR 50,000 to NPR 500,000, on sellers failing to meet their obligations.
1. Misclassification of E-Commerce Companies as Sellers
E-commerce companies are not “sellers”; they serve as intermediaries between sellers and buyers. They function as digital platforms facilitating transactions, rather than directly selling goods. The current bill places undue legal liability on e-commerce platforms, which could deter young entrepreneurs and inhibit business growth. Instead, this law should be a Vendor Act, regulating sellers rather than penalizing e-commerce platforms. While quality checks by platforms are essential, imposing imprisonment for products sold by third-party vendors is unreasonable and counterproductive.
2. Lack of Distinction Between E-Commerce Models
The bill fails to differentiate between various e-commerce models such as:
B2C (Business-to-Consumer)
C2C (Consumer-to-Consumer)
B2B (Business-to-Business)
B2BC (Business-to-Business-to-Consumer)
Many young entrepreneurs earn foreign revenue by selling Chinese products to U.S. clients and vice versa, without needing a legally registered company, website, or mobile application. The bill does not consider such evolving business models and could unfairly penalize small-scale digital entrepreneurs operating through platforms like social media.
3. Unfair Accountability for Delivery Issues
E-commerce platforms often rely on third-party logistics and courier services for deliveries. However, the bill holds e-commerce companies accountable for failed or delayed deliveries, rather than penalizing the responsible delivery companies. This misdirected accountability could lead to operational inefficiencies and financial losses for e-commerce businesses. The law must instead regulate logistics providers and enforce penalties on delivery services that fail to fulfill their commitments.
4. Restrictive Regulations on E-Commerce Businesses
The bill wrongly assumes that all e-commerce businesses must establish a legal entity, website, or mobile application. In reality, individuals can run successful e-commerce businesses through social media and other online marketplaces without owning a dedicated platform. Enforcing mandatory registration and website development adds unnecessary barriers, discouraging digital entrepreneurship and hindering economic growth.
Need for Informed Policymaking in the IT Sector
Nepal’s dream of becoming a Digital, E-Commerce, and Data Hub can only be realized through well-informed policies crafted with input from industry experts. Unfortunately, this bill appears to have been developed without adequate consultation with key stakeholders, including leading e-commerce platforms like Daraz, Sastodeal, Jeeve, SmartDoko, Thulo, and Muncha. Policymakers must engage with professionals working in real-time technology environments to create laws that foster, rather than hinder, digital business expansion.
Call for Amendments
The newly passed E-Commerce Bill is regressive and threatens Nepal’s digital economy. Immediate amendments are necessary to address these issues and create a more business-friendly regulatory environment. We urge the government to reconsider its approach and collaborate with industry leaders to formulate policies that drive innovation, protect consumers, and support Nepal’s aspirations of becoming a global digital commerce leader.
For more: Nepal E-Commerce Bill 2081
