Up to 15% Internal Production Protection Duty Imposed on 256 Imported Items Including Bricks, Tiles, and Amarisco

The government has imposed an additional duty ranging from 5 to 15 percent on 256 imported items to promote and protect domestic production. Finance Minister Dr. Swarnim Wagle stated that the purpose of instituting this duty is to reduce the import of goods that discourage local production. Under the Economic Bill 2083, this additional charge will be applied to items such as dairy products, coffee, tea, spices, bamboo, and coal.

In accordance with the Economic Bill 2083, the government has applied extra charges on the post-customs price of these imported goods to emphasize internal production promotion and protection. Through the upcoming fiscal year’s budget, Finance Minister Dr. Swarnim Wagle asserted that customs duties have been levied to decrease the import of goods that disincentivize domestic production. On Friday, he announced the imposition of an additional tax ranging from 5 to 15 percent aimed at encouraging domestic production and safeguarding local industries.

As per the Economic Bill enacted to formalize the customs rate changes announced in the budget, a customs duty of 5 to 15 percent has been applied on imports under 256 subheadings within 41 primary categories. The government has imposed this as an extra tax labeled as the ‘Internal Production Promotion and Protection Duty.’ It has been noted that if these goods are produced domestically, their prices will remain unaffected; however, prices of imported items will increase accordingly.

The government has applied a 10 percent additional duty on the post-customs price of milk that is fortified or mixed with sugar or other sweeteners, as well as powdered, granular, or other solid items with a fat content of less than 1.5 percent by weight. Similarly, a 10 percent duty is also levied on skimmed milk, milk mixed with sugar or other sweet substances, milk cream extracted from milk, and other products containing fat or oily substances.