KATHMANDU, May 20: The Ministry of Finance (MoF) has started sorting out the list of raw materials, semi- finished and final goods in a particular type of product in order to revise the import duty based on the nature of the imported goods.
Currently, the government charges custom duty on raw materials similar to the final products in many cases. Industrialists have been demanding the government to reduce duties on raw materials and semi-finished goods to promote domestic production.
According to an official at the MoF, the ministry will be incorporating the issues in the budget for 2022/23. As of now, the MoF has differentiated around two dozens of the goods in the aforementioned three categories.
If the government’s plan is materialized, imported raw materials will be considered for minimum customs duty. Importers of the semi-finished goods will have to pay higher duty than that of the raw materials and the final consumer goods will be subjected to pay the largest amount in customs duty.
Since last year, the government has been taking different duties on imported sponge iron, billets and iron rods. In the new provision, the government is considering differentiating import duties on goods like footwear, glass and a number of manufactured products.