From daily essential commodities to electric appliances and from textiles to spices, goods are comparatively cheaper in the Indian market, prompting hundreds of Nepali customers visit Jogbani, particularly during Dashain and Tihar festivals. For an instance, a kg of sugar and a litre of mustard oil are cheaper by Rs 15 and Rs 40, respectively in the Indian market, compared to the prices in Biratnagar.

Traders said a 13 percent VAT is levied on grocery items and taxes on textiles range from 5-30 percent. “Price conscious customers normally opt to shop where they get goods at cheaper rates,” said Rajendra Raut, senior vice president of Morang Merchant Association. It’s a normal routine for the

customers to throng

Jogbani as daily essential commodities and garment are very cheaper there, he said.

“Nepali customers spend millions of rupees in purchasing goods in India, as due to the tax structure, goods become expensive in Biratnagar,” said Raut, adding to encourage customers to buy goods in local markets, the custom points should be made stricter.

The Biratnagar custom office allows a customer to import household goods worth Rs 5,000 at a time without taxes. During the festival season, imports of sugar, spices, edible oil and textiles skyrockets. A customer is permitted to import 5 kg sugar, 3 kg cumin seeds (Jeera), 5 litre mustard oil and 5 pieces of cloths at a time without paying custom charges. The customs charges are waived for goods worth up to Rs 5,000.

The budget for the current fiscal year had raised the custom charges on cotton clothes to 15 percent from 5 percent. A custom official said it is part of the social obligation to allow customers to import commodities up to a limited amount for household needs. However, customers importing goods worth above Rs 5,000 are charged regular taxes.