Entrepreneurs in Birgunj have strongly objected to the government’s decision to double customs duties on raw materials used in the production of wires, including galvanized iron (GI) wires.

Under the budget for fiscal year 2025/26, the customs duty on imported wire rods—a key input in wire manufacturing—has been raised from 5 percent to 10 percent.

The Birgunj Chamber of Commerce and Industries, representing one of Nepal’s major industrial zones, condemned the move, warning it could deal a serious blow to domestic manufacturing.

Chamber’s Acting President Madhav Rajpal said the organization has submitted a formal request to the Ministry of Finance, urging an immediate reversal of the decision. He accused the government of catering to the interests of a few at the cost of over two dozen others.

“Raw material tariffs should remain low to support industrial growth,” Rajpal stated. “Doubling the duty will drive up production costs, push up prices, and may force domestic factories to shut down.”

The Chamber has called on the government to reinstate the previous 5 percent levy.