‘Illegal taxes’ by local units

Birgunj chamber mulls legal remedy

Published On: February 3, 2019 09:44 AM NPT By: Ritesh Tripathi

BIRJUNG, Feb 3: Birgunj Chamber of Commerce and Industries has claimed that the industries along Parsa-Bara industrial corridor have been facing the burden of 'illegal taxes'. 

The chamber has said that it is preparing to seek legal action as the local level units have been forcefully levying taxes on the industries, flouting the directive of the Ministry of Federal Affairs and Local Development. 

Chamber President Gopal Kediya said: "We tried to resolve this issue through talks with the local government to save them from blame. But there was no solution. We are now planning to move the court." 

The chamber is planning to sue the local municipalities for collecting or allowing taxes going beyond their jurisdiction. 

According to the Kediya, such taxes are targeted on firms in Jitpur Simara Municipality and Parwanipur Rural Municipality, where most of the corridor's industries are located.  

On the other hand, Ashok Baidya, president of Shalimar Industrial Group, accused contractors of extorting money from the local firms and industries. 

Speaking to Republica, Baidya said: “Some contractors have been labeling our products as scraps and forcefully charging us money for it. We have complained at the sub-metropolitan office and local police."

Baidya added that neither the police nor the sub-metropolitan office have taken any action against these contractors. 

Officials at the sub-metropolitan office informed that they were holding talks with the contractors and producers.

A contractor, Saraswati Constructions, has been charging firms at Parwanipur for “area loading, unloading and exporting” on products such as bricks and cements.

Chief of Parwanipur Rural Municipality, Hariyan Prasad Shah Kanu, justified such charges saying that it was in accordance with the law. 

However, the Constitution of Nepal does not allow such local charges or taxes. 

Article 228 of the Constitution states: “(1) No tax shall be levied and collected except in accordance with law, (2) The local level shall impose tax in areas within its jurisdiction, without causing any adverse impact in the national economic policy, transportation of goods, services, capital and labor, and on neighboring or local levels.

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