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🇳🇵 Nepal /Economy & Trade

Madhesh crackdown on Indian-registered vehicles rattles political parties

From Kathmandu Post · (3d ago) English Mixed tone

Summarized and contextualized by DistantNews.

TLDR

  • Madhesh province authorities in Nepal have intensified a crackdown on Indian-registered vehicles, sparking a debate.
  • Political parties and locals argue the restrictions disrupt social and economic ties, demanding free movement within 30km of the border.
  • Officials insist the crackdown enforces existing customs laws to prevent tax evasion and ensure legal accountability.

A renewed crackdown on Indian-registered vehicles in Nepal's Madhesh province has ignited a contentious debate, pitting local authorities against political parties and residents who fear disruption to long-standing cross-border relations. While officials cite the need to curb unauthorized use, security concerns, and tax evasion, a joint statement from major political parties signals strong opposition.

Vehicles entering Nepal must comply with customs rules. Driving without paying customs duties is illegal, and we are simply implementing the law.

— Ramuraj KadariyaThe chief district officer of Sarlahi explains the rationale behind the stricter monitoring of Indian-registered vehicles.

The Kathmandu Post reports that parties including the CPN-UML and Nepali Congress are demanding that Indian vehicles be allowed to operate freely within a 30-kilometer radius of the border, a practice previously common. They warn of protests if the administration proceeds with stricter enforcement, highlighting the deep social and economic interdependencies in the region.

We allow Indian-registered vehicles to enter only after collecting the required customs duty at the entry point. Legally, Indian vehicles cannot be operated without paying customs charges.

— Bikash Raj RajakThe Chief Customs Officer at Gaur Customs Office clarifies the legal requirements for Indian vehicles.

District officials, however, maintain they are merely enforcing existing customs laws. Chief District Officer Ramuraj Kadariya stated that vehicles entering Nepal must comply with customs rules, and driving without paying duties is illegal. Customs officials confirm that daily fees are levied, and while a one-day pass may be free, longer stays require payment. Despite these provisions, widespread non-compliance is acknowledged, with estimates suggesting thousands of Indian vehicles operate without paying customs duties, often facilitated by political influence. This crackdown, officials assert, aims to end such impunity and ensure legal accountability.

In the past, people would pay tax for a day and use the vehicle illegally for months. Even if these vehicles were caught, they often managed to get away by using political influence. That will no longer continue.

— A security officer in RautahatAn anonymous security officer describes past non-compliance and the intent to end it.
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Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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