India Levy 4.5% Service tax, Consumers to Suffer

India Levy 4.5% Service tax, Consumers to Suffer

January 25: India has levied 4.5 per cent service tax on transportation of Nepali goods imported through Indian port which may affect Nepali industrialists and customers adversely.  According to some industrialists, Nepali market will have direct impact of the decision taken by Finance Ministry of India.

The tax implemented from January 23 will adversely affect Nepali industries and customers," said Shiva Shankar Agrawal, Former President of Chamber of Industries,Morang. He said, "Indian Finance Minister circulated a notice regarding the tax on January 12. It levied 4.5 per cent service charge on marine imported good since January 23."

According to Agrawal, no tax and service charges were payable earlier. However, the implemented decision of Indian government will affect the general consumers of Nepal as it will increase the production cost. Previously, service charges were collected on the clearing of goods imported through Kolkata.

However, Kiran Basnet, Chief of Biratnagar Customs Office said that they are not acquainted to any such service tax collected by Indian government. "We have not received any information regarding the matter," he said.