Setback for Nepal’s Balen Shah Government from SC: Stay on Decision to Levy Tax on Goods Worth Up to ₹100 from India

Kathmandu. Common citizens and small traders purchasing everyday goods at the India-Nepal border have received significant relief. Nepal’s Supreme Court has issued an interim stay on a decision by Prime Minister Balen Shah’s government, under which customs duty was being levied even on goods valued at over ₹100 brought into Nepal from India.

Following this decision, constant disputes and uncomfortable situations were arising at border checkpoints. Common people were facing immense difficulties as taxes were being collected even on small, daily-use items.

Increased Strictness at the Border
After the implementation of the new rules, the Customs Department at the India-Nepal border had begun enforcing strict measures even on small items such as chips, biscuits, and bananas. Due to the fixed limit of ₹100, heated arguments and disputes frequently erupted between common citizens and security personnel.

Matter Reaches the Court
This government decision was challenged in Nepal’s Supreme Court by advocates Amitesh Pandit, Akash Mahato, Suyogya Singh, and Bikram Shah. Conducting a hearing on the matter, the Court issued an interim order.

Supreme Court’s Interim Order
A joint bench comprising Justices Hari Prasad Phuyal and Tek Prasad Dhungana stated in its order that such strictness regarding daily-use items—exercised by the Ministry of Finance and the Customs Department—is not appropriate. The Court issued a clear directive that, pending a final verdict, no tax shall be collected from common people at the border on daily-use goods, and the status quo ante (previous situation) shall be maintained.

Relief for Traders and the Public
Following this verdict, small traders and common citizens in the border regions have breathed a sigh of relief. Traders have expressed that this decision will reduce unnecessary disputes at the border and make everyday shopping much easier.