KATHMANDU, July 5: The government has made Permanent Account Number (PAN) registration compulsory for Indian citizens running businesses in Nepal.
For decades, Indian nationals have operated small-scale enterprises in Nepal’s local markets, including tea and betel shops, salons, fruit and vegetable stalls, and electrical repair services. Most of these businesses have functioned outside the tax system.
A PAN is a permanent identification number assigned to taxpayers, which remains valid regardless of changes in business location or personal details.
PAN mandatory for all income earners from mid-July
Keshav Raghubanshi, Information Officer at the Inland Revenue Department (IRD), said Indian citizens can now obtain PAN cards more easily, allowing them to operate legally, comply with tax obligations, access banking services, and conduct smoother transactions. “If an Indian citizen wants a personal PAN number, they can obtain it by submitting any identity document. It can be issued based on a ration card or a letter from the Indian Embassy in Kathmandu,” he explained.
The IRD has introduced schemes to bring Indian-run businesses into the tax bracket. Officials say the provision not only ensures compliance but also provides business owners with a formal identity linked to the state system, fostering greater responsibility towards governance.
The government has been expanding the PAN system under the policy of ‘One Person, One PAN’, announced in the fiscal year 2019/20 budget. The initiative aims to include all individuals engaged in economic activity—from street vendors to laborers—within the tax framework.
