Nepal's New Customs Duty Hits Cross-Border Shopping Hard
Nepal’s Customs Duty Makes Buying Indian Goods Expensive: Border Bazaars Bearing The Brunt?
News 18
Image: News 18
Nepal has implemented a new customs duty of up to 80% on goods worth over ₹100 (NPR 100) from India, significantly increasing shopping costs for border communities. The shift to strict enforcement has led to protests and a drop in foot traffic at border markets, impacting low-income families who relied on affordable Indian goods.
- 01Nepal's customs duty now applies to goods over ₹100 from India, with rates from 5% to 80%.
- 02Strict enforcement has replaced the previous informal duty-free status, causing long queues and seizures.
- 03Border communities are experiencing economic strain and protests due to increased shopping costs.
- 04Local Nepali retailers are raising prices as sourcing from India becomes more difficult.
- 05The new rules challenge low-income families' strategies to cope with inflation.
Advertisement
In-Article Ad
Since mid-April, Nepal has enforced a new customs duty of up to 80% on goods valued over ₹100 (NPR 100) imported from India, impacting cross-border shopping significantly. Previously, small purchases were exempt from duties, allowing shoppers to bring in goods worth ₹200-500 without scrutiny. However, the new regulations require taxes on even minor items, leading to long queues at border points like Birgunj, Biratnagar, and Bhairahawa. Local authorities have announced that no exemptions will be granted, resulting in the confiscation of millions in goods. The rule has triggered protests in border regions, particularly in Bihar and Uttarakhand, where communities rely on open, untaxed borders for affordable goods. Many low-income families, who depended on cheaper Indian products to manage domestic inflation, are now facing heightened costs and logistical challenges in their routine shopping. While the government aims to boost domestic revenue and local production, the low threshold for duty has made everyday purchases increasingly burdensome for the average citizen.
Advertisement
In-Article Ad
The new customs duty increases the cost of essential goods for families in border areas, making it harder for them to manage daily expenses amidst rising inflation.
Advertisement
In-Article Ad
Reader Poll
Do you support the new customs duty on goods from India?
Connecting to poll...
Read the original article
Visit the source for the complete story.


