Smuggling has continued to rise in lack of enforcement of uniformed tax systems between Nepal and India.
Though the sovereign countries have their separate modus operandi of state governance, the tax system with identical nature was appropriate for preventing smuggling in the context of open border, the stakeholders of the economic sector said.
Industrialists and businessmen of Birgunj have also demanded alignment between the India-enforced Goods and Services Tax (GST) and customs assessment system of Nepal to control smuggling through the open border.
The urge has come in the context of lack of uniformity in the GST enforced by the Indian government and customs assessment system of Nepal.
It may be noted that the Armed Police Force (APF) in Parsa had seized goods worth Rs 151.8 million imported in the first four months of the current fiscal year.
The items recovered by the Armed Police include clothes, electronic goods, hardware, motor parts, food and groceries.
In the same period, goods worth Rs 26.43 million without invoice were also seized. In this context, senior vice-president of Birgunj Chamber of Commerce and Industry Hari Gautam said that illegal import-export could not be controlled in lack of uniformity between GST and customs duty of Nepal.
“At present, illegal economy is prevailing in our country in terms of exports and imports. There are higher differences in the price of goods between Nepal and India. It has enabled environment for smuggling”, he noted.
“The unlawful export-import could have been reduced if the high customs duty by enforcing uniformed systems”, he said, arguing it would also help control the informal economy.