Nepal has triggered controversy along the border after enforcing strict customs duties on goods entering from India from April 2026 under the new government led by Balendra Shah.
Goods worth more than 100 Nepalese Rupees bought from India now require customs payments. Earlier, small household purchases were usually exempt from such strict checks. Depending on the product, duties range from 5% to 80%, along with an extra 13% VAT, making essentials like lentils, oil, sugar, vegetables and clothing more expensive.
Nepal has also introduced special permits and daily charges for vehicles with Indian number plates entering the country. Traders in border markets of Bihar and Uttar Pradesh, including Jogbani and Araria, are reportedly facing losses as fewer Nepali customers cross the border. Nepal says the move is aimed at boosting local production and stopping revenue loss.
