Government to Impose Customs Duty on 256 Products to Promote Domestic Production

The government has planned to impose customs duties on the import of 256 products starting from the upcoming fiscal year to promote and protect domestic production. According to the revised customs rates, a duty ranging from 5 to 15 percent will be levied on the import of these goods. Finance Minister Dr. Swarnim Wagle stated that this measure has been introduced to reduce imports of products that discourage domestic production.

May 29, Kathmandu: The government has decided to impose customs duties on goods competing with domestic products starting from the next fiscal year. To encourage domestic production, preparations are underway to levy customs duties on imports of 256 different items. Finance Minister Dr. Swarnim Wagle announced that the budget includes provisions for customs charges to reduce the import of goods that undermine local production.

On Friday, Minister Wagle informed that customs rates ranging from 5 to 15 percent have been determined to promote and protect domestic production. According to the Economic Bill presented to legally formalize the revised customs rates through the budget, imports of 256 sub-heading products under 41 categories will be subject to a customs duty between 5 and 15 percent. The government has termed this levy as the “Domestic Production Promotion and Protection Duty.”

This customs duty will not apply to products produced within Nepal; however, it will be imposed on imported goods as a price increment. Under the new regulations, a 10 percent customs duty has been set on condensed milk, sugar and other sweetened milk products, and powdered, grain, or other solid items containing less than 1.5 percent fat by weight. Additionally, skimmed milk, sugar or other sweetened products, milk-derived cream, and other fat or oily substances will also be subject to a 10 percent customs duty.