Duty exemption limit raised to Rs 1,000

KATHMANDU, NOV 10 -

The government has raised the customs duty exemption for goods imported from bordering markets for household purposes to Rs 1,000 from Rs 100. A cabinet meeting on Monday took the decision to this effect. This means that those who buy goods worth up to Rs 1,000 by crossing the border will not be required to pay import duty.

Although the Finance Ministry had proposed increasing the limit to Rs 500, the ceiling was increased further after immense pressure from Madhesi parties.

In order to discourage the tendency of purchasing goods from the other side of the border, the Department of Customs had implemented the provision of simplified customs declaration form from last June. DoC officials said it had given much needed momentum to bordering Nepali markets, but the Madhesi parties were demanding an increase in the limit saying that it created problems for people living in the border areas.

DoC Director Shyam Dahal said that implementation of the simplified declaration form had helped in revenue collection positively. “We have collected Rs 180 million from June to August,” said Dahal.

A high-level placed source at the DoC said that the recent move of the government wouldn’t hurt the overall revenue collection. “Be it Rs 100 or Rs 1,000, it doesn’t make a significant change in national revenue collection. Tax exemption for people who purchase goods worth up to Rs 100 was a bit impractical, and we had been discussing making it more practical which has been fulfilled with this new provision,” he said.

He added that tax exemption on purchase of goods worth up to Rs 100 was just a step to control the unchecked flow of people from bordering areas which has remained successful till date. “We should all work for the newly introduced provision at the earliest,” added the source.

Source: Kantipur