Drop in vehicle, petroleum import hits revenue collection

Kathmandu, Aug. 1

Finance Minister Dr. Yuba Raj Khatiwada has said that revenue collection was lower last year because of the government policy to discourage the import of goods that were contributing to widening trade deficit.


"The government wanted to discourage the import of goods that were hurting the country's balance of payment and contributing to the widening trade deficit so it applied measures to check the import of luxury goods like vehicles," he said while speaking at a two-day Customs Management Seminar organised by the Department of Customs (DoC).


He said that the reduced import of vehicles and petroleum affected the revenue collection at the customs in Fiscal Year 2018/19. Similarly, increased electricity supply has resulted in decreased import of petroleum products, one of the major sources of revenue.


He urged the Nepali business community to produce more competitive goods and find international markets to sell them.


"The government has adopted a policy to promote domestic industries and products. So I urge the private sector to focus on increasing the production and export of Nepali goods," said FM Dr. Khatiwada.


He said that anti-dumping and countervailing duties act was in the parliament and it soon would be implemented. This will contribute to the protection of the domestic industries.  


According to him, the government was working to formalise the informal trade happening at the Nepal-India border.


"Trade with the neighbouring countries is still a large grey area. Banking channels are not being utilised in bilateral trade with India and China. The government does not know the exact size of the trade," he said.


He said that the government was enhancing the capacity of the Armed Police Force to monitor the border activities. “Sensitive areas in terms of smuggling are in the priority.”


Rajan Khanal, Finance Secretary, said that customs valuation model for the goods should be according to the Asycuda – a digital customs system - modelled and managed digitally.


"When the transition, movement and transaction of goods are tracked well and transparent, black marketing will automatically be controlled," he said.


Khanal urged the business community to start discussion about increasing the product and promoting export.


According to him, the business community should think about producing more competitive goods and finding their foreign markets.


Rameshwor Dangal, Director General of the Department of Customs (DoC), said that the broker model was applied in Rasuwagadhi and Tatopani customs, which had made the goods movement fast and transparent.


Rajesh Kazi Shrestha, President of the Nepal Chamber of Commerce, demanded that there should be no customs evaluation, but the duty should be according to the transaction price.


"We want e-payment and e-Letter of Credit facilities so that the goods could be released without any hassles, and we can do so from our own offices," he said.


Satish Kumar More, President of the Confederation of Nepalese Industries (CNI), stressed on refining the perishable goods and producing high quality exportable goods.

Published in The Rising Nepal daily on 2 August 2019.