KATHMANDU, Dec 10: The Ministry of Finance (MoF) has clarified that imposing taxes merely on the basis of using roads for transporting goods is against the law.
According to the MoF, the Constitutional provisions, the Intergovernmental Fiscal Management Act, 2017, and the Local Government Operation Act, 2017 do not grant provincial or local governments the authority to levy taxes on the transport of locally produced goods between provinces or between local levels.
Tax reform committee proposes increasing Social Security Tax to...
Some local governments have been imposing taxes and fees on goods passing through their jurisdiction. The Ministry stated that such tax collection has negatively affected farmers and traders. It has been clarified that local governments cannot charge taxes on goods dispatched from other districts or local levels solely because the road passes through their area.
Regarding this issue, the MoF on December 9 decided to notify all provincial governments and local levels accordingly. MoF Spokesperson Tank Prasad Pandey said that the correspondence has already been issued as per the decision.
