Customs reference value unchanged despite soaring commodity prices
BHAIRAHAWA, AUG 20 -
Onion prices have crossed the Rs 100 per kg mark in the retail market while the customs value of the vegetable remains at IRs 12 per kg. The government imposes an import duty of 5 percent on farm products as agriculture development fee.
As the reference valuation rate fixed by the Department of Customs is IRs 12 per kg for onion s and IRs 10 per kg for
potatoes, importers are happy to pay duty according to the official rates.
Vegetable prices have surged in the border markets in Nepal and India. In Bhairahawa, cauliflower costs Rs 110 per kg, tomatoes Rs 80 per kg, cowpea Rs 60, gourd Rs 40, bitter gourd Rs 60, lady finger Rs 60 and
bottle gourd Rs 40 per kg. However, the customs valuation for all these vegetables has been fixed at Rs 16 per kg. Importers pay 5 percent tax based on this reference value.
Even though prices have soared in the market, the customs office said that the present reference price is still higher compared to previous seasons. “The valuation rate was hiked during this season. Earlier, our reference value was IRs 7 for onion s and IRs 6 for potatoes,” said Kul Prasad Gyawali, chief of Bhairahawa customs. The valuation reference book at the customs office has mentioned that the reference price of onion s should be maintained at IRs 7 per kg from mid-March to mid-August which should be increased to IRs 12 per kg from mid-August to mid-March. In the case of potatoes, the reference price has been fixed at IRs 6 and IRs 10 per kg for the respective periods.
The valuation rate is adjusted once a year. Another valuation meeting is taking place from Aug 24-27. “I will raise the issue at the scheduled meeting about the difference between the government’s reference rate and the actual market price,” said Gyawali.
As agriculture products can be sold at higher prices by paying lower tax, vegetable imports have continued to grow. According to the Regional Plant Quarantine Office, Bhairahawa, the country imported vegetables worth Rs 1.51 billion through the Bhairahawa customs office in the fiscal year 2012-13. Imports through the customs office in the previous fiscal year amounted to Rs 1.08 billion.
With the increased inflow of cheaper Indian vegetables, Nepali farmers have been badly affected. Ramlakhan Lodh, a farmer of Mainaiya, said production costs were lower for Indian farmers due to the relatively higher subsidies provided by the Indian government. “As importers can bring in Indian vegetables without paying proper taxes on them, Nepali farmers are finding it hard to sell their products.”
Source: The Kathmandu Post
