Nepal’s Balen Shah government suffers setback from SC, stays decision to levy tax on goods up to Rs 100 from India

Kathmandu. Common citizens and small traders buying daily goods at the India-Nepal border have received a major relief. The Supreme Court of Nepal has put an interim stay on the decision of Prime Minister Balen Shah’s government, under which customs duty was being levied on goods worth more than Rs 100 brought from India to Nepal.

Following this decision, disputes and uncomfortable situations arose at border checkpoints. Common people faced significant inconvenience due to the imposition of taxes on even small items of daily use.

Strictness increased at the border.
After the new rules came into effect, the Customs Department was taking strict measures on even small items like chips, biscuits, and bananas at the India-Nepal border. The ₹100 limit often led to heated arguments and disputes between civilians and security personnel.

The case reached the court.
Advocates Amitesh Pandit, Akash Mahato, Suyogya Singh, and Bikram Shah challenged this government decision in Nepal’s Supreme Court. Following the hearing, the court issued an interim order.

The Supreme Court’s interim order,
a joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana, stated in its order that such strictures on daily use items by the Ministry of Finance and the Customs Department were not justified. The court clearly directed that until a final decision is reached, no taxes will be levied on daily use items from the public at the border and the status quo will be restored.

Small traders and
ordinary citizens in border areas have breathed a sigh of relief following this decision. Traders say this will reduce unnecessary border disputes and make everyday shopping easier.