Nepal’s Supreme Court has temporarily stopped the Balen Shah government’s controversial customs rule at the Nepal–India border. The government had started collecting customs duty on goods worth more than NPR 100 brought from India. Officials charged taxes even on small everyday items. The move triggered criticism across Nepal, especially in border regions.
On Friday, a joint bench of Justices Hari Prasad Phuyal and Tek Prasad Dhungana issued an interim order and suspended the rule.
Court Orders Government to Stop Enforcement
The Supreme Court directed the Prime Minister’s Office, the Council of Ministers, the Finance Ministry, and other authorities not to enforce the disputed provision until further notice.
The order came after petitioners challenged the Finance Ministry’s decision in court. They argued that the policy violated provisions of the Customs Act 2024.
After hearing arguments from lawyers, the court stayed the decision. It also ordered authorities to continue the previous customs system until the final verdict.
Rule Created Problems at Border Checkpoints
The Balen Shah-led government introduced the rule after coming to power. Soon after, officials tightened inspections at India–Nepal border checkpoints.
Many Nepali citizens regularly visit nearby Indian markets to buy affordable daily-use products. However, the new rule created confusion and tension at border areas. Officials reportedly checked bags and charged duty even on low-cost products such as chips packets, biscuits, and spices.
Backlash Grows in Terai-Madhes Region
The policy sparked strong criticism in Nepal’s Terai-Madhes region. Cross-border shopping is common there, and many families depend on Indian markets for cheaper goods. Several disputes also broke out between residents and customs officials at border checkpoints.
Critics said the rule unfairly targeted ordinary people buying basic items for daily use. With the interim order now in place, the government cannot collect customs duty on such low-value goods until the Supreme Court gives its final decision.