FEB 08, BHAIRAHAWA.
The customs office at Bhairahawa has started levying import duty on goods carried in more than one piece of hand luggage. The new rule has resulted in a two-fold jump in revenue collection.
The local people, however, are upset by the policy as they are used to making shopping trips to the Indian market across the border because the goods are cheaper there.
Shoppers refusing to pay import duty have been forced to return their purchases to the shops.
“The move is aimed at changing the habits of the local people who rush to the Indian market to buy all kinds of goods,” said Kul Raj Gyawali, chief of the Bhairahawa Customs Office.
“The import of large amounts of merchandise in hand luggage as household items has affected government revenue. The enforcement of the tax system will encourage legal imports,” he added. Gyawali said that allowing hand luggage in unlimited quantities had also been hurting the business of genuine traders. However, no import duty is levied on personal goods brought by returning migrant workers.
Likewise, the customs office will not charge taxes on people bringing household products, excluding electronics and machinery, in one piece of hand baggage.
Sunauli Bazaar across the border is one of the major shopping destinations for Nepalis, and hordes of shoppers hop to India daily to do their shopping.
“The enforcement of the new provision has brought down business in Sunauli by 50 percent,” said Mohan Serwani, proprietor of Hari Om General Stores in Sunauli.
Another shopkeeper Atul Jaiswal, proprietor of Paridhan Apparels, said it had affected the clothing business the most. “Despite the enforcement of such a strict provision, smuggling to Nepal has not stopped,” added Jaiswal.
Traditionally, people throng Sunauli Bazaar to buy goods as they are cheaper there, and people from remote areas in Nepal depend on this marketplace for their necessities.
The local people, however, are upset by the policy as they are used to making shopping trips to the Indian market across the border because the goods are cheaper there.
Shoppers refusing to pay import duty have been forced to return their purchases to the shops.
“The move is aimed at changing the habits of the local people who rush to the Indian market to buy all kinds of goods,” said Kul Raj Gyawali, chief of the Bhairahawa Customs Office.
“The import of large amounts of merchandise in hand luggage as household items has affected government revenue. The enforcement of the tax system will encourage legal imports,” he added. Gyawali said that allowing hand luggage in unlimited quantities had also been hurting the business of genuine traders. However, no import duty is levied on personal goods brought by returning migrant workers.
Likewise, the customs office will not charge taxes on people bringing household products, excluding electronics and machinery, in one piece of hand baggage.
Sunauli Bazaar across the border is one of the major shopping destinations for Nepalis, and hordes of shoppers hop to India daily to do their shopping.
“The enforcement of the new provision has brought down business in Sunauli by 50 percent,” said Mohan Serwani, proprietor of Hari Om General Stores in Sunauli.
Another shopkeeper Atul Jaiswal, proprietor of Paridhan Apparels, said it had affected the clothing business the most. “Despite the enforcement of such a strict provision, smuggling to Nepal has not stopped,” added Jaiswal.
Traditionally, people throng Sunauli Bazaar to buy goods as they are cheaper there, and people from remote areas in Nepal depend on this marketplace for their necessities.
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