Nepal Supreme Court Halts Tax on ₹100+ Indian Goods, Relief for Border Traders and Citizens

In a major relief for citizens and small traders along the India-Nepal border, Nepal’s Supreme Court has put a temporary stay on the Balen Shah government’s controversial decision to impose customs duty on goods worth more than ₹100 brought from India.

The ruling comes after widespread criticism and inconvenience caused by the new regulation, which had triggered chaos at border checkpoints and affected thousands of people engaged in daily cross-border shopping and small-scale trade.

Under the now-suspended rule, even low-cost everyday items such as packets of chips, biscuits, bananas and other essential goods brought from India into Nepal were being subjected to customs scrutiny and taxation. The strict enforcement reportedly led to frequent disputes between citizens and border security personnel.

The policy had sparked outrage among local residents, especially those living in border areas who regularly cross into India to purchase affordable daily-use items. Small traders also claimed the measure was hurting their livelihoods and disrupting local business activity.

Challenging the move, advocates Amitesh Pandit, Akash Mahato, Suyogya Singh and Bikram Shah filed a writ petition before Nepal’s Supreme Court, calling the decision arbitrary and unfair.

Hearing the case, a joint bench of Justice Hari Prasad Phuyal and Justice Tek Prasad Dhungana issued an interim order on Friday, directing the Ministry of Finance and customs authorities to stop collecting tax on daily-use items at the border until a final verdict is delivered.

The court observed that imposing such strict restrictions on essential goods used by ordinary citizens was unjustified and ordered authorities to restore normal conditions at border crossings.

Following the verdict, traders and residents have expressed hope that unnecessary harassment and disputes at customs checkpoints will reduce, easing movement and trade between India and Nepal once again.

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