The ongoing protests in Nepal stem from new customs duties imposed by Prime Minister Balendra Shah’s government. Historically, trade and movement across the Indo-Nepal border have flourished, benefitting citizens on both sides. Nepali residents frequently travel to Indian border markets to purchase essential goods such as groceries, medicines, and electronics, which are often more affordable than local options.

However, the situation has changed following the government’s implementation of a customs duty on goods valued over Nepalese Rupees (NPR) 100 (approximately INR 63). This duty has reportedly varied from 5 per cent to 80 per cent depending on the item, sparking backlash from the public.

The protests began shortly after Shah took office, amidst long-standing frustrations regarding the enforcement of customs regulations which had previously been lax. Many residents view the sudden crackdown as an unjustified blockade affecting their daily lives.

Nature of the Protests and Public Sentiment

Nepali citizens have expressed their grievances through widespread protests, particularly in the border town of Birgunj and the capital Kathmandu. Many residents from border areas have voiced concerns that the new regulations will significantly impact their livelihoods. Reports state that cross-border purchases are essential for daily needs, and the enforcement of customs duties will lead to increased financial burdens for families.

Videos circulating on social media depict heated confrontations between citizens and Nepal’s security and customs personnel as residents attempt to carry goods from India. One incident featured a woman in Nepalgunj who was stopped from bringing in packets of chips, pleading for her money back as she faced the authorities.

The enforcement of these duties has led to a noticeable decline in foot traffic to Indian markets, affecting local economies reliant on Nepali shoppers. Shopkeepers and transport workers in India are reportedly struggling due to the diminishing number of visitors from Nepal.

Government Rationale for Imposing Customs Duties

The reason behind the re-enforcement of these customs duties lies in previous complaints regarding the outflow of revenue from Nepal to Indian markets. The Nepali government has stated that extensive shopping trips by residents for everyday items directly impact local Nepali businesses and, consequently, national revenue. The customs department has indicated that the duty is meant to prevent revenue leakage and curb illegal imports, aiming for stricter enforcement in light of ongoing challenges.

Information from the Nepal Department of Customs clarifies that the duty has existed in some form previously. However, the current administration has emphasised stricter adherence to this policy since last week, coinciding with the Nepali New Year.

This development has led to rising tensions as political responses unfold. While the Nepali Congress party has called for an immediate repeal of the customs duties, members within Shah’s own party, the Rastriya Swatantra Party, have also raised concerns regarding the practicality and implications of such a low threshold in the current economic climate.

As Prime Minister Balen Shah faces increasing unrest over his recent policies, the protests highlight broader public discontent over regulations perceived to place an additional financial strain on everyday citizens. The ongoing situation remains dynamic, as various stakeholders in Nepal’s border regions react to the government’s enforcement measures.

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