Nepal border protest erupts over tax enforcement on Indian goods above NRS 100

Protests have broken out in Nepal’s border town of Birgunj against a government directive mandating customs tax on all goods valued above NRS 100 brought in from India. The agitation comes amid stricter enforcement of border checks by security agencies aimed at curbing revenue leakage and informal cross-border trade.

The new measures have triggered anger among residents in Nepal’s southern border regions, where daily movement across the India–Nepal border is common for purchasing food, clothing and household essentials. Locals say the restrictions are disrupting livelihoods and slowing down local markets, while authorities insist the crackdown is part of a broader effort to enforce customs rules more strictly.

A protester told ANI that essential goods for daily life in Nepal are heavily dependent on supplies from India, adding that the new enforcement feels like an “unannounced blockade.” Another demonstrator said the rule ignores long-standing social and economic ties between the two countries, demanding exemption for small-value household items and calling for respect for the “Roti-Beti” relationship shared across the border.

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Officials from Nepal’s customs department said the rule is not new, but is now being implemented more strictly as part of a zero-tolerance policy against revenue leakage. They said joint monitoring teams involving customs authorities, revenue investigation officials, district administration, police and the Armed Police Force have intensified inspections at border points.

”They’re not allowed to bring in items that cost above NRS 100 without paying tax; we want this provision to end. It has brought us to the protest. They should also respect the relation that exists- the relation of Roti-Beti between India and Nepal. We are demanding that the government give an exemption to the items that cost above Nrs. 100, which is for domestic use,” another protestor told ANI.

The secondary customs points are seeing widespread crackdowns in the name of controlling customs evasion. High-ranking officials at the Department of Customs have confirmed this tightening of border controls. An official stated that the government’s previous declaration to control revenue leakage at border points is now being implemented strictly.

’It has always been the government’s policy to adopt a zero-tolerance approach to prevent illegal imports in customs areas. The Customs Act already had a provision requiring duties on goods worth more than 100 rupees, the official said. ’We have become more proactive now. There are similar directives from the Minister and the Prime Minister.’

According to the official, joint monitoring teams comprising the Department of Customs, the Department of Revenue Investigation, District Administration Offices, Nepal Police, and the Armed Police Force have increased their activity, leading to stricter controls on all goods entering the country.

Furthermore, private vehicles with Indian license plates are now prohibited from entering Nepal without prior authorisation. Previously, motorcycles with such plates were frequently seen entering Nepal, and some individuals were even using them within the country.

This unilateral, strict policy and the ban on Indian-registered vehicles have created significant problems in the border districts of Madhesh, affecting the daily lives of residents. Various political parties, civil society leaders, and local residents have expressed intense dissatisfaction, claiming that the decision from Kathmandu ignores the reality of life in the Madhesh region.

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