Image Source, APF Nepal
Following the enforcement of stricter customs duties on goods purchased from India and brought into Nepal, residents of border areas have called for some exemptions on household items.
In May, the government released a regulation in the official gazette that denies customs exemptions to individuals crossing the border by land, and has instructed customs authorities to rigorously implement the rule.
Additionally, the public reports a ban on bringing commodities such as oil and food items from India.
Security forces near the border have been making loudspeaker announcements alerting the public that customs must be paid on goods valued over NPR 100 to be brought across.
A spokesperson for the Customs Department explained that this provision has long existed in law and is currently being enforced to promote domestic purchasing.
Image Source, Madhuri Mahato
Calls to Address Price Hikes
Previously, small purchases typically went untaxed, but since the new government took office, the rules have been strictly enforced. This increased enforcement at border checkpoints has also faced resistance.
In various Madhesh Province border areas, security personnel use loudspeakers to inform the public that goods exceeding NPR 100 in value must be declared for customs.
Shopping in Indian markets is common in border areas, but reactions to the new strict rules have been mixed.
Young resident Mukesh Mahato from Birgunj points out that consumers face high prices in Nepali markets and urges government attention to the issue.
“Especially during festivals, prices are often double or triple the designated rates. Protecting domestic businesses is important, but forcing consumers to purchase expensive goods without considering the implications is unfair,” he said.
“Difficulties Paying Customs on Gifts”
Sonali Karn from Parsa’s Panitanki said, “Enduring the weather to reach the border is not easy for anyone. But the price difference between here and there is huge. We go there to save a small amount, like two rupees. While it is important for the country’s economy to improve, such regulations should not adversely affect people.”
Sunita Devi from Parsa noted, “Customs duties on goods costing more than NPR 100 make it hard for homemakers to manage expenses. Our income remains the same, but expenses have risen considerably. Some relief on household goods is necessary, especially since we are currently managing weddings and religious observances.”
Image Source, Madhuri Mahato
Mamata Devi from Ramgadhwa explained, “My relatives live in India. When I visit, it’s customary to send gifts like sarees. If customs must now be paid on such gifts too, it will be difficult.”
Rural resident Radha Hamal said the rule affects homemakers most. “The wealthy aren’t affected, but for daily wage earners, this regulation is hard. Rules should be implemented with solutions to avoid encouraging smuggling,” she stated.
“Local traders bring goods cheaply from across the border, which is reasonable when profit is minimal, but overpricing goods here is unfair.”
Business Community Welcomes Regulation, Government Responds
Merchants have expressed approval of the government’s decision.
Suman Paudel, a grocery trader from Bara-Parsa said, “The government’s decision is positive. Though some inconvenience might arise, it will help strengthen Nepal’s economy in the long run.”
Image Source, Madhuri Mahato
Clothing retailer Abhishek Sharma from Birgunj added, “Current data shows Birgunj’s trade has grown by 85 percent. It’s good to spend money within our country. The myth that Indian goods are cheaper is dispelled once customs duties are applied, as prices balance out.”
Image Source, Madhuri Mahato
Last year in May, a Nepal government notification stated that people crossing by land routes are not eligible for customs exemptions.
Under the Customs Revenue Act 2081, travelers crossing land borders with personal goods valued up to NPR 100 may be exempted from duties at the discretion of the customs chief.
Uday Singh Bista, officer at Birgunj Customs, confirmed, “This rule was always in place; the current government has simply instructed stricter enforcement.”
He clarified that customs duties will apply to goods exceeding NPR 100, adding, “Foodstuffs require quarantine approval, which is not feasible to manage with small amounts. The new government is applying the regulations more strictly.”
Image Source, Madhuri Mahato
Kishor Bartaul, communications officer at the Customs Department in Kathmandu, explained the rule has existed and is now enforced to encourage domestic trade.
He said, “People often buy two to four kilograms of sugar from across the border. We must promote buying within Nepal.”
Finance Minister Swarnim Wagle, after taking office, instructed customs officials to monitor operations diligently and honestly collect revenue.
Bartaul also noted that no directives from the central government have been issued regarding stricter enforcement or extra fees at borders.
According to Customs Department data, over 83 percent of the revenue collection target of nearly NPR 582 billion for the last fiscal year was achieved.
The department stated that as of the end of this fiscal year’s Magh month, approximately 85.6 percent of the revenue target has been collected.
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