The industrialists of Biratnagar have expressed concern that the decision to revise the GST rate will have a direct impact on the daily consumables, raw materials and industrial goods used in Nepal.
What you should know
The recently concluded 56th Goods and Services Tax (GST) Council meeting in India revised the tax rates. Tax was revised up to 5, 18 and 40 percent on various items.
The industrialists of Biratnagar have expressed concern that the decision to revise the GST rate will have a direct impact on the daily consumables, raw materials and industrial goods used in Nepal. This rule is coming into effect from October 6.
The Morang Industry and Commerce Association has expressed serious concern by releasing a statement on Thursday. "India's new GST system is likely to increase prices in the Nepali market by 18 to 30 percent", the statement said. According to the
association, petroleum products, sugar, jewelry, food, clothing, footwear, electronic goods and other imported goods will be more expensive, so Nepali industries, businesses and consumers will be directly affected. According to the association, there is a possibility that smuggling will increase, illegal trade will intensify and the competitiveness of Nepali products will decline after the implementation of high taxes on goods imported by Nepal from India. The association claims that this will cause price increase and shortage problems especially in the areas of daily consumer goods, stationery, clothing, footwear, FMCG, electronics etc.
The association has requested the government of Nepal to take immediate effective steps to minimize the impact of Indian GST.
Chairman of Nepal Industry Confederation, Koshi, Pawan Sharda said that the government should take strict action to control the illegal business through the open border. According to him, due to the increase in Indian taxes, there is a risk that illegal trade will increase and it will cause great damage to the state's revenue.
