After the Lumbini state government's announcement that tax will be levied on the production of community forests from the next year through the budget, the forest users' federation has opposed it.

In item number 201 of the budget statement of the year 2082/083 released on June 1, the government has announced that a one percent tax will be levied on the annual income of community forest consumer groups up to 200,000, and 5 percent on the income from within the group and 25 percent on the income from sales outside the group. 

A single community forest in Lumbini province earns more than 30 lakhs annually. The government aims to collect a large revenue from it . The Community Forest Consumer Federation has protested against it and demanded its immediate cancellation.

Community Forest Users Federation of Lumbini Province has issued a press release and has demanded to facilitate the negotiation environment by immediately removing the tax provisions imposed on forest groups as this will affect the negotiations on the budget brought by the provincial government. The government has demanded the immediate removal of the tax proposal on community forest groups proposed in item number 201 of the budget brought by the government.

The state government had introduced a policy of taxing the income of community forests in the current year as well. In the current year, it was decided to levy 10 percent tax on the income from internal sales within the consumer group and 25 percent on the income from sales outside the consumer group . In opposition to that, the Forest Consumer Federation of Lumbini Province has been continuously protesting . However, even though it has been reduced to 1 percent up to 2 lakh and 5 percent for income above 2 lakh, the federation has also opposed it.

The federation has alleged that the policy brought by the government is trying to break the previous agreement and ongoing negotiations with the federation. Kalpana Bhandari, president of Federation of Lumbini Province, said that the government is pretending to negotiate with us and has followed the policy of interfering with the rights of consumers by increasing the tax even more.

"We were trying to find a solution to the problem through dialogue," she said. We will respond strongly to that.'

She said that she will not negotiate anymore and will decide on the movement for consumer rights. Even before this, the Federation had been holding sit-ins and protesting in the provincial assemblies and ministries. Community Forest Consumers Federation has been claiming that it cannot be taxed as it is a non-profit organization.