Kathmandu-CAN Federation, the umbrella body of Nepal’s information technology sector, has submitted policy recommendations on the proposed E Commerce Directive 2082. The submission was made through the Information Technology Development Committee of the Federation of Nepalese Chambers of Commerce and Industry.

Senior Vice President of CAN Federation and cyber security expert Chiranjivi Adhikari presented the recommendations. He said Nepal’s digital market must be built on security, simplicity, and sovereignty.

Adhikari said the government should introduce a National Minimum Security Standard instead of limiting its focus to general data protection. He proposed a Trust Seal for platforms that meet the standard to strengthen consumer confidence.

To simplify business registration, the federation proposed an integrated API based system. The system would automatically sync PAN, VAT, and OCR details with government portals. This, it said, would reduce administrative burden and delays.

On data sovereignty, the federation urged the government to encourage domestic data hosting. It proposed tax rebates for companies that store user data in Nepal based data centres.

The federation raised concern over strict punitive provisions in the draft directive. It said proposed jail terms of three to five years for platform failures could create fear among startups. It asked the government to remove custodial sentences and adopt proportionate financial penalties instead.

For small and medium enterprises, the federation said the current 35 day registration deadline is impractical. It proposed extending the period to 90 days as a technical support window. It also called for a Safe Harbor provision. Platforms that conduct proper due diligence of sellers should not be held liable for individual product level faults.

The federation also stressed the need to address barriers to international digital payments. It said Nepali e commerce platforms cannot compete globally without access to cross border payment systems. It proposed forming a task force with Nepal Rastra Bank and other agencies. It also suggested a fee holiday for small digital transactions.

Chairperson of the FNCCI Information Technology Development Committee Shakti Kumar Begani and the co chair welcomed the recommendations. They described the initiative as timely and constructive. CAN Federation said the directive should go beyond regulation. It should act as a partnership framework for building Digital Nepal.