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Nepal Faces Protests Over New Customs Regulations

Nepal Faces Protests Over New Customs Regulations

Post by : Shakul

Protests are escalating in Nepal's border regions and urban centers following the government's strict enforcement of customs duties on goods coming in from India. This action has ignited public discontent due to the surge in prices of essential goods and interruptions in cross-border commerce.

The enforcement is a result of policies introduced by Balendra Shah, who recently took office. Just weeks after his appointment, this decision has led to significant demonstrations, particularly in border towns like Birgunj and in the capital city, Kathmandu.

Historically, the open border with India facilitated an easy flow of goods and people, helping residents access affordable everyday items. However, the new customs rules, imposing duties on goods valued over NPR 100, have altered this long-standing arrangement dramatically.

Local residents have voiced concerns that these regulations are increasing their financial strain. Many rely on Indian markets for their groceries, medications, and other household necessities, and the newly instituted duties, ranging between 5% and 80%, have inflated prices significantly.

Videos and reports from border checkpoints reveal heated confrontations between the public and security forces. In some cases, even minor items like snack packets have been seized, leading to public frustration and questioning the viability of these policies.

The government has stood by its decision, claiming the regulation is not novel but is now being enforced strictly to minimize revenue loss and safeguard local enterprises. Officials suggest that extensive cross-border buying was undermining Nepal’s domestic markets and tax revenues.

This issue has escalated politically, with opposition parties, along with some members of the ruling coalition, condemning the approach as unrealistic. With protests on the rise, there are threats of larger movements if adjustments to the policy are not made, signaling increasing tensions regarding economic management and governance in Nepal.

April 23, 2026 2:37 p.m. 1227
Politics News Asia News GeoPolitics Politics Policy Nepal Protest trade

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