Nepal Supreme Court stops customs tax on ₹100 goods under new government policy

The Supreme Court of Nepal has delivered a major interim ruling that halts the enforcement of a controversial customs duty policy introduced by the government led by Kathmandu Mayor Balen Shah. The decision specifically restricts the collection of customs duties on low-value goods—particularly items worth around ₹100 or slightly above—brought across the India–Nepal border, offering immediate relief to small traders and daily commuters. According to the court’s order issued by Justices Hari Prasad Phuyal and Tek Prasad Dhungana, customs authorities will not be allowed to impose taxes on essential daily-use items until the final verdict on the matter is reached. The ruling came in response to a writ petition challenging the government’s directive, which had imposed strict customs checks and taxation even on very small and personal-use goods. The disputed policy had created widespread inconvenience at border checkpoints between India and Nepal. Ordinary citizens traveling across the border reportedly faced intense scrutiny from customs officials and security personnel. Everyday items such as snacks, fruits, and packaged food products were being inspected and, in some cases, taxed if their total value exceeded the minimal threshold set by the new rule. This enforcement led to frequent disputes and frustration among border residents and small-scale traders, many of whom depend on cross-border movement for their livelihoods. The situation also caused delays and confusion at checkpoints, disrupting normal trade and travel activities. The petitioners, including advocates Amitesh Pandit, Akash Mahato, Suyogya Singh, and Bikram Shah, argued that the policy was arbitrary and unfairly targeted ordinary citizens. They claimed it placed unnecessary financial and administrative burdens on people who were simply carrying basic necessities for personal use. In its interim order, the Supreme Court acknowledged these concerns and stated that such strict restrictions on everyday goods were unreasonable at this stage. The court emphasized that until a final judgment is delivered, the Ministry of Finance and the Customs Department must refrain from collecting taxes on low-value personal-use items at border points. The ruling has been welcomed by traders and border communities, who believe it will significantly reduce unnecessary harassment and streamline cross-border movement. It is also expected to ease tensions between citizens and enforcement officials, restoring smoother trade flow between India and Nepal at local checkpoints. While the final outcome of the case is still pending, the interim decision marks an important moment in addressing concerns over border trade regulations and the balance between taxation policy and public convenience.