KATHMANDU, July 8: It has been suspected that former finance minister Janardan Sharma gave customs duty exemption on the import of sanitary pads so as to benefit Jaiveer Singh Deuba's company. Jaiveer Singh is the son of Prime Minister Sher Bahadur Deuba.
Blueprint Trading, a company founded by Jaiveer, has been importing and selling various goods. The company is also importing sanitary pads with customs exemption. It is also said that the company is now preparing to import large quantities of sanitary pads from different countries after the government provided a waiver on customs tax on the import of sanitary pads.
Earlier, while unveiling the budget for Fiscal Year 2022/23 on May 29, former finance minister Sharma announced 90 percent customs duty exemption for the import of sanitary pads. On the other hand, the customs duty on the raw materials imported by a domestic company producing pads was increased.
The policy of waiving customs duty on imports and increasing tariffs on imports of raw materials for domestic production has doubly benefited the entrepreneurs involved in the import trade. The Prime Minister's son Jaiveer's company is sure to make good profits due to this policy.
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Finance Minister Sharma resigned on Wednesday on the charge of using ‘intermediaries’ during the preparation of the budget. A high-level investigation committee has also been formed to probe the allegations.
It is seen that Sharma announced customs duty exemption in the connivance of Jaiveer Singh, causing the sanitary pad industry with an investment of over Rs 7 billion to go bankrupt.
Even though he has given tax exemption on the import of pads in collusion with the Prime Minister's son, Sharma has been claiming that he has reduced the customs duty against ‘red tax’. The paid-up capital of Blueprint Trading Company established by Jaiveer is Rs 10 million.
Jaiveer has also made a partner in this company. He seems to have made Hemant Bajgain of Chitwan his partner. Jaiveer owns 70 percent of stakes in the company and Bajgain owns the remaining 30 percent. As per the Office of The Company Registrar, the company was opened in Kathmandu in the fiscal year 2074/75 BS. Prime Minister Deuba’s son Jaiveer Singh is the chairman of the company.
According to customs department sources, the company has been importing sanitary pads and other similar items for about two years. Although Jaiveer is the chairman of the company, Bajgain has been doing all the business work. Import of foreign pads did not increase as expected as domestic industries producing sanitary pads started opening one after another. At present, there are more than three dozen pad manufacturing companies in the country and the investment is increasing every year.
A total investment of more than Rs 7 billion has already been made in the domestic sanitary pad industry. It is said that former finance minister Sharma took this step in with the connivance of Jaiveer Singh to bring down the growing domestic industry and make the trade one-sided. It is suspected that the interests of both sides have been met as Sharma himself has taken a policy of taking financial benefits by manipulating tax rates in collaboration with various business houses.
Before the introduction of the budget, the import duty on sanitary pads was 15 percent. After the government gave 90 percent exemption, the customs duty will now be only around 1.5 percent. Stating that the industry would collapse after the budget reduced the customs duty on pad imports, the pad industrialists had demanded to correct the policy after meeting all the top leaders of the coalition parties including Prime Minister Deuba. Even now, the industrialists of eastern Nepal are agitated against this provision of the budget.
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