Nepal Border Protests Erupt Over New Tax on Small Imports from India

Protests have broken out in Nepal's border town of Birgunj against a government directive imposing customs duty on all items valued over 100 rupees imported from India. Security agencies have intensified monitoring at border points to control revenue leakage, a move officials say implements a long-standing but previously lax provision. The policy severely impacts residents of border regions like Madhesh, who rely on Indian markets for daily essentials, with many calling it an "unannounced blockade." The crackdown includes bans on Indian-registered vehicles and has sparked widespread dissatisfaction among local communities and political parties.

Key Points: Nepal Protests Tax on Imports Over 100 Rupees from India

  • Protest against new import tax
  • Stricter border monitoring enforced
  • Daily life in border districts disrupted
  • Political and civil society dissatisfaction
3 min read

Protest erupts in Nepal against taxation on imports above 100 rupees from India

Protests erupt in Birgunj, Nepal, against new strict customs duties on goods over 100 rupees from India, straining cross-border relations.

"It is an unannounced blockade. - Protester in Birgunj"

Birgunj, April 19

A protest has erupted in Nepal's Birgunj town, adjoining India, against the government directive to tax all sorts of items above NRS 100 being imported from India.

The protest comes in the wake of the strict monitoring by the security agencies along the border points in the southern plains of Nepal, claimed to control the revenue leakage.

The move comes amid complaints that residents in border areas frequently travel to Indian markets to purchase food items, clothing and other household goods, leading to sluggish local markets and loss of national revenue.

"Whatever the rituals are performed here (Nepal) from birth to death, we bring all the essentials from there (India), even the fertilisers which the Government of Nepal at times is not able to provide on time, we bring them from there. Now the situation has turned different; it is an unannounced blockade. The Jana Adhikar Party demand it to be withdrawn. Failure to control the plunder by the Government of Nepal is its incapacity," a protester told ANI.

The Armed Police Force (APF) has started urging people to mandatorily pay customs duty on goods worth more than Rs 100 brought in from India. Targeting ordinary citizens who previously enjoyed informal customs exemptions for small purchases and household items, the government has begun strictly enforcing a rule requiring mandatory customs duties on any goods valued over NRS. 100 rupees.

"They're not allowed to bring in items that cost above NRS 100 without paying tax; we want this provision to end. It has brought us to the protest. They should also respect the relation that exists- the relation of Roti-Beti between India and Nepal. We are demanding that the government give an exemption to the items that cost above Nrs. 100, which is for domestic use," another protestor told ANI.

The secondary customs points are seeing widespread crackdowns in the name of controlling customs evasion. High-ranking officials at the Department of Customs have confirmed this tightening of border controls. An official stated that the government's previous declaration to control revenue leakage at border points is now being implemented strictly.

'It has always been the government's policy to adopt a zero-tolerance approach to prevent illegal imports in customs areas. The Customs Act already had a provision requiring duties on goods worth more than 100 rupees, the official said. 'We have become more proactive now. There are similar directives from the Minister and the Prime Minister.'

According to the official, joint monitoring teams comprising the Department of Customs, the Department of Revenue Investigation, District Administration Offices, Nepal Police, and the Armed Police Force have increased their activity, leading to stricter controls on all goods entering the country.

Furthermore, private vehicles with Indian license plates are now prohibited from entering Nepal without prior authorisation. Previously, motorcycles with such plates were frequently seen entering Nepal, and some individuals were even using them within the country.

This unilateral, strict policy and the ban on Indian-registered vehicles have created significant problems in the border districts of Madhesh, affecting the daily lives of residents. Various political parties, civil society leaders, and local residents have expressed intense dissatisfaction, claiming that the decision from Kathmandu ignores the reality of life in the Madhesh region.

The scene at the border now appears abnormal and tense. The checks conducted by the Armed Police Force on Nepalis returning from the weekly market in Phareniya, Rupandehi, reflect the reality of the border. Long lines are visible as every person's bags and packages are opened and inspected.

- ANI

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Reader Comments

P
Priyanka N
While I understand Nepal's need to protect its revenue, this feels like a heavy-handed approach. The protester's point about "Roti-Beti" is crucial—our ties are familial. Couldn't they have a higher threshold or a monthly quota for essential items? This will cause unnecessary hardship.
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Aman W
As an Indian living near the UP-Nepal border, I see both sides. Our markets in Rupaidiha and Sonauli are full of Nepali shoppers every day. Their economy gets our goods, our economy gets their customers. A complete crackdown hurts everyone. Hope sense prevails.
S
Sarah B
Interesting to read. From an outside perspective, it seems the Kathmandu government is trying to formalize a very informal economy. But implementing it without considering local realities is a recipe for protest. The mention of fertilizers being bought from India is a serious point about supply gaps.
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Vikram M
The real issue is the failure of the Nepali state to provide essentials on time, forcing people to cross over. Instead of fixing their supply chains, they are punishing their own citizens. The protest is justified. This policy will not last.
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Kriti O
Feeling for the common people there. Long lines, bags being checked for small items... it's creating a border in the mind where none existed. We share so much culture and family. Hope the governments talk and find a sensible solution that doesn't treat daily shoppers like smugglers.

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