After a Long Hiatus of 8 months; Government Uplifts the Import Ban on Mobile Phones, Cars and Alcohol

The restriction on the importation of cars, cellphones, alcohol, and motorcycles has been lifted by the government after 8 months. The decision to relax the import restriction on specific materials with effect from Poush was made during the Cabinet meeting on Tuesday.

In an effort to protect the nation's foreign exchange reserves from further decreasing, the government had formally banned the import of at least 10 items that it deems luxury or non-essential on Baishakh, 2079. 

However, the government decided to relax the import prohibition on other products like kurkure, lays, cigarettes, TV, diamond, playing cards, and toys on Ashoj while keeping the import restrictions on vehicles, motorcycles, cell phones, and alcohol as it is. originally, it was prohibited to import motorcycles with engines larger than 250 cc, but on Shrawan 1st, this rule was altered to prohibit the importation of motorcycles with engines larger than 150 cc.

Nepal had a significant current account deficit as a result of the excessive outflow of foreign currency. Additionally, import capacity also decreased because of which, the government had decided to continue the import ban of pricy luxury goods.

However, the government has decided to lift the prohibition as of now in light of the impacted tax collection. According to reports, the administration has decided there is no need to keep the import ban in place because the external sector of the economy is now improving.

According to data for the past three months ending in mid-October 2022/23, Nepal's macroeconomic and financial situation has improved overall. The total trade deficit has decreased by 13.1%, remittance inflows have increased by 16.8%, gross foreign exchange reserves have increased by 2.5%, and merchandise imports have decreased by 16.2%.