KATHMANDU: The Ministry of Finance has told provincial and local governments to ensure that no taxes or fees are levied on the transportation of goods when roads are used solely for cargo movement.
The ministry issued circulars to provincial governments through the Office of the Prime Minister and Council of Ministers and to local levels through the Ministry of Federal Affairs and General Administration, requesting compliance with the provision.
In the circular, the Finance Ministry instructed concerned authorities to refrain from imposing any charges that could have a negative economic impact on local farmers, traders, and businesses.
The ministry reminded local levels that under the Constitution and prevailing laws, it is not permissible to collect any form of tax or fee on goods that are merely in transit through a local jurisdiction after being dispatched from another district or local level for transportation purposes.
“The Office of the Prime Minister and Council of Ministers has been requested to inform all provincial governments, and the Ministry of Federal Affairs and General Administration has been requested to inform all local levels to ensure that no taxes, duties, or fees are imposed in contravention of the Constitution of Nepal and existing laws,” the Finance Ministry stated.
According to the ministry, the decision was taken at the ministerial level on December 9 and official correspondence has already been sent to all concerned bodies for necessary action.
The move follows reports that some local levels had been collecting taxes and fees on agricultural produce transported from other local jurisdictions, prompting concerns over legal compliance and economic burden on producers and traders.
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