Nepal Imposes Tax On Indian Goods Above INR 63, Sparks Protests

Last Updated:April 20, 2026, 16:37 IST

Nepal's Armed Police Force has begun strictly enforcing the rule, requiring duty payments on all goods exceeding NRS 100, which is about Rs 63.

A protest has erupted in Nepal’s Birgunj town, which borders India, against a government directive to impose customs duties on goods valued above NRS 100 (around Rs 63) brought in from India. Locals say the move has sharply increased the cost of essential daily items and disrupted traditional cross-border trade patterns.

The unrest comes amid tighter monitoring by security agencies along Nepal’s southern border, which authorities say is aimed at curbing revenue leakage and informal imports. Residents, however, argue that the new enforcement has turned routine movement into a burden.

Border tensions in Birgunj

People in border areas frequently travel to Indian markets to buy food items, clothing, fertilisers and household goods, citing better availability and prices.

“Whatever the rituals are performed here (Nepal) from birth to death, we bring all the essentials from there," a protester told ANI. “Even the fertilisers which the Government of Nepal at times is not able to provide on time, we bring them from there."

“Now the situation has turned different; it is an unannounced blockade," the protester added.

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Crackdown and political backlash

The Armed Police Force (APF) has begun strictly enforcing the rule, requiring duty payments on all goods exceeding NRS 100. Joint monitoring teams involving customs, police and revenue officials have increased inspections at secondary border points, leading to long queues and frequent checks of travellers’ belongings.

Authorities maintain that the policy is not new, but its enforcement has been tightened to ensure compliance with existing customs laws and reduce smuggling.

Nepali officials said the government is following a “zero-tolerance approach to prevent illegal imports in customs areas."

However, the measures have triggered political criticism. The opposition Nepali Congress has called for the immediate withdrawal of the decision, calling it as “anti-people and insensitive" at a time of rising inflation. The party warned that the move disproportionately affects low-income households in border districts who rely on cheaper goods from India.

Tensions have also been fuelled by additional restrictions, including tighter rules on Indian-registered vehicles entering Nepal. Residents in Madhesh province say the combined measures are disrupting daily life and cross-border mobility.

The scene at the border now appears abnormal and tense. The checks conducted by the Armed Police Force on Nepalis returning from the weekly market in Phareniya, Rupandehi, reflect the reality of the border. Long lines are visible as every person’s bags and packages are opened and inspected

(With inputs from agencies)

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