“We recovered Rs 400,000 each from the tankers as customs duty and penalty, as our investigation showed that the tankers had evaded customs. The amount was recovered from tanker owner Shiva Prasad Ghimire,” an official at Birgunj customs told Republica.
A few days ago, customs officials had seized two of the four tankers that were returning to India after off-loading fuel at the Amlekhgunj depot. The tanker owner had later failed to produce the customs clearance documents.
As per the existing provision, the tankers that make body in India have to pay a customs of 30 percent with the capacity valuation of Rs 6 per liter. “We slapped the penalty on the tanker owner as the tankers were operating without clearing the customs duty,” the source added.
Nepal Oil Corporation (NOC) -- the sole oil distributor -- has been supporting tax evasion by encouraging tankers that go to India to build body to ferry fuel. Birgunj Customs initiated investigation on the tankers after Republica broke story on tax evasion.
Responding to fuel crisis, NOC management had decided to allow 200 more tankers to ferry petroleum products. Of the 200 tankers, 22 have already entered Nepal. But the new tankers are entering the country carrying fuel like the old tankers and, hence, evading customs.
“With the decision to slap penalty on tanker owner, we are hopeful that the tendency of evading tax will be discouraged,” the official added.
Most of the tanker owners take chassis to India for building body because Indian builders charge lower than Nepali builders.
As per the existing provision, NOC cannot give permission to tankers to ferry fuel unless they clear customs duty and other taxes. However, NOC was permitting tankers to carry fuel and evade tax, flouting the customs regulation and its own regulation.
Meanwhile, expressing serious concern over tax evasion, Minister for Commerce and Supplies Rajendra Mahato Sunday sought clarification from NOC chief Digambar Jha.
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