KATHMANDU: Local governments in Nepal will no longer be allowed to impose taxes, fees or charges on goods being transported through their jurisdictions.
The decision was made during the meeting of the Intergovernmental Fiscal Council and its thematic committee held on April 16.
Under the new decision, products made in one local unit and transported through another local unit cannot be charged any form of transport tax or duty.
The meeting also directed immediate removal of such charges if any local government is currently collecting them.
According to the decision, imposing fees on the movement of goods through another local area goes against the spirit of Nepal’s Constitution and existing laws.
The Ministry of Federal Affairs and General Administration has been instructed to formally notify all local governments.
The move is expected to improve smoother cargo movement across the country and reduce extra logistics costs for businesses.
