If Nepali traders pay the tax amount, they will end up forking out Rs10,000 for each truck of ginger that enters India, says a customs agent
Oct 15, 2017-Ginger worth Rs5 million has been stranded in Mechi Customs Office after Indian customs officials imposed goods and services tax of 5 percent on the Nepali spice.
Nepali traders have long been exporting fresh ginger to India. Fresh ginger is exempt from goods and services tax introduced by India in June. But Nepal has long been exporting fresh ginger as ‘dry ginger’, which attracts goods and services tax in India.
“Since Nepal has been exporting fresh ginger as dry ginger, Indian customs officials are demanding that the tax be paid before the spice enters the Indian territory,” ginger traders said.
Traders said they explained this issue to Indian customs officials. “But they said they need orders from higher authority.”
If Nepali traders pay the tax amount, they will end up forking out Rs10,000 for each truck of ginger that enters India, according to Shyam Subba, a customs agent. On top of that, Rs1,700 per truck has to be paid as “quarantine charge”, Subba said. “As a result, around 100 trucks laden with ginger are stranded on the Nepal-India border,” added Subba.
If India decides to impose the tax on Nepali ginger, the entire sector will collapse, said Bhakta Bahadur Thapa, a ginger trader.
Oct 15, 2017-Ginger worth Rs5 million has been stranded in Mechi Customs Office after Indian customs officials imposed goods and services tax of 5 percent on the Nepali spice.
Nepali traders have long been exporting fresh ginger to India. Fresh ginger is exempt from goods and services tax introduced by India in June. But Nepal has long been exporting fresh ginger as ‘dry ginger’, which attracts goods and services tax in India.
“Since Nepal has been exporting fresh ginger as dry ginger, Indian customs officials are demanding that the tax be paid before the spice enters the Indian territory,” ginger traders said.
Traders said they explained this issue to Indian customs officials. “But they said they need orders from higher authority.”
If India decides to impose the tax on Nepali ginger, the entire sector will collapse, said Bhakta Bahadur Thapa, a ginger trader.
