Nepal Imposes 80% Duty on Indian Goods Above NPR 100 to Curb Cross-Border Shopping

The government of Nepal has introduced a new customs regulation imposing an 80% import duty on goods brought from India if their value exceeds 100 Nepalese Rupees, marking a major shift in cross-border trade policy.

The decision, implemented under the administration of Kathmandu Mayor Balen Shah, comes in response to a growing trend of Nepali citizens purchasing goods from Indian markets through border crossings. Officials say the increase in such transactions has been affecting domestic businesses.

Authorities explained that the policy is designed to discourage excessive reliance on imported goods and to strengthen the local economy. By making cross-border purchases more expensive, the government hopes to encourage consumers to support locally produced items.

The move reflects broader concerns about informal trade and revenue loss, as many small-scale imports often go unregulated. Officials believe stricter enforcement and higher duties will help bring more control to border commerce.

However, the policy may also impact consumers who depend on affordable goods from neighboring India, potentially leading to higher costs for everyday items. Economists suggest the effectiveness of the measure will depend on enforcement and the availability of competitive local alternatives.