Notable increment in export tax on ginger both in Nepal and India

BHADRAPUR, Sept 1: The Appellate Court, Ilam has on Friday issued an interim order not to impose export tax on ginger.

The court issued the order staying the imposition of such tax until another decision is taken in that connection. The Appellate Court issued the order in response to a writ challenging the imposition of Rs 5,000 export tax on per truck ginger by the Jhapa District Coordination Committee. The committee started charging tax on ginger exported to India via the Kakarbhitta transit point.

The writ was filed by Nepal Ginger Producers’ Association on Thursday.
The court has called the defendants Jhapa District Coordination Committee for an explanation on the issue on September 11.

Before this, the Jhapa District Development Committee had been charging Rs 700 as tax per truck of ginger export. But the District Coordination Committee has increased it to Rs 5,000 per truck.

The Indian government has also increased the tax on ginger exported from Nepal by Rs 2,000 per truck at a time when the dispute over export tax on ginger has been heating up in Kakadbhitta.

“India had been taking Rs 7,000 per truck of ginger as tax before the imposition of GST. It was Rs 11,000 per truck after the imposition of GST. Now, it has increased the tax to Indian rupees 13,000 per truck,” said Acting President of the Association, Tomlal Rajbanshi.

According to Rajbanshi, the tax increment both in Nepal and India has put a big burden on the ginger producers.

Meanwhile, 14 trucks of ginger exported from Nepal are stranded at the Indian customs for the past one week in the pretext of quarantine test. The Indian customs officials have said they have sent samples of the ginger to Bangalore for quarantine test and have not yet received the report. It is said it will take a week for the report to come.

Rajbanshi said the Indian customs would not allow the trucks to leave for their respective destinations until the quarantine test report was received.