Sunauli turns quieter after goods over Rs. 100 are taxed

By Our Correspondent,Bhairahawa, June 29: The markets in Sunauli, an Indian market bordering Nepal, have started turning quieter since the Nepal government decided to levy tax on any good worth over Rs. 100.

The quietness is a result of strict checking of goods imported from Sunauli, India, by the authorities at the Belahiya Border Point of Rupandehi district.

The Bhairahawa Cutsoms Office has of late started implementing the provision of paying tax after filling a customs declaration form for any imported goods worth over Rs. 100. It is provisioned in the Customs Act.

Locals informed that around 95 per cent of Nepali consumers in the region were dependent on the markets of Sunauli. 

“The flow of Nepalis to Indian markets has decreased after May 27, 2023, as the tax on goods worth over Rs. 100 started being implemented strictly,” said Yubaraj Bhattarai, information officer for the Bhairahawa Customs Office. “As per our speculation, around 80 per cent of Nepalis who visited Indian markets have stopped doing so. Those who are still visiting Sunauli are paying the taxes and our tax collection is getting better,” said Bhattarai.

Only from retail goods imported from Sunauli, the Bhairahawa Customs is raising around Rs. 300,000 in taxes daily. Earlier, locals did not have to pay the tax for basic retail goods making the travel to Sunauli economical. However, authorities informed that it was causing millions in losses to the government.

While Indian market operators have shown dissatisfaction as their sales have declined, Nepali market operators have applauded the move.

“If people stopped buying from Indian markets, Nepali markets will bloom. It is better for all,” said Netra Prasad Acharya, senior vice president at FNCCI, Sidhharthanagar.

“We can also see that the authorities have increased surveillance along the border areas to prevent smuggling. We should stop smuggling to aid our national economy,” said Acharya.