Birgunj, March 7

Entrepreneurs in Nepal have rued the increase in transaction cost due to the service tax imposed by the Indian government on goods imported to Nepal from third countries via India.

“India has waived off VAT and excise on the goods and commodities that are imported to Nepal, so the service tax levied on transportation of goods is unfair,” argued Federation of Nepalese Chamber and Commerce of Industry, Supply Committee coordinator Bijaya Kumar Sarawogi, adding, “It’s totally unfair to impose the tax meant for India on the goods and commodities being brought to Nepal.”

“As the import cost of raw materials and final goods has increased on a large scale, it has caused unexpected rise in the cost of production and trade,” Sarawogi said.

He added that Indian truck and railway entrepreneurs were charging 14 per cent service tax on the goods and commodities imported to Nepal.

On his part, Birgunj Chamber of Commerce and Industry chairperson Pradip Kumar Kediya also rued the service tax. “It’s ok in India, but it is unfair on the part of the Indian government to levy service tax on the goods imported to Nepal,” he argued, while FNCCI central member Ashok Kumar Temani also expressed similar views.