Nepal may withdraw its decision to impose taxes on Indian goods after facing widespread protests. The rule mandated duty on items above 100 Nepali rupees, disrupting daily life in border areas. Demonstrations erupted across cities, calling it an “undeclared blockade.” Amid backlash and political pressure, the government is now reconsidering the policy.
The Government of Nepal is likely to roll back its recent decision to impose strict taxes on goods brought from India following widespread domestic backlash. The move, which enforced customs duty on items worth over 100 Nepali rupees, triggered protests across the country.
The long-standing open border between India and Nepal, one of the most unique in the world, allows citizens of both nations to cross freely without visas or passports. However, in April 2026, the government led by Balen Shah began strictly implementing an existing customs rule after the Nepali New Year.
Under the rule, goods exceeding the value threshold attracted customs duties of up to 80%, depending on the category. Reports from border checkpoints indicated strict enforcement, with officials even inspecting small household items. Videos circulating on social media showed authorities confiscating everyday goods like packets of chips.
The decision sparked protests in border towns such as Birgunj and Bhairahawa, as well as in Kathmandu. Demonstrators described the move as an “undeclared blockade,” arguing it disrupted daily life, religious practices, and agricultural activities.
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