Print Edition - 2015-05-18 | MONEY
Despite duty waiver, tarpaulin price up
May 17, 2015-
Although the government has waived off customs duty on the import of tarpaulin, its price is on the rise.
While the price should have gone down following the waiver of the tariff, it has increased by as high as Rs 200 per piece over the last week.
In a bid to make the availability of tarpaulin easier after the earthquake, the government has waived off all kinds of taxes on tarpaulin since May 2, 2015.
Sushil Sharma, spokesperson for Birgunj Customs Office, said the scheme would be in place until June 3, 2015. Prior to this, the government charged 30 percent customs duty and 13 percent value added tax on tarpaulin.
After the tax waiver off was implemented, 423,101 units of tarpaulin have so far been imported from the Birjung customs.
Sources say traders are creating artificial shortage and have piled up stocks in their godowns. “Based on the imports, it should have covered up all the affected areas,” a source said. “However, the market is still facing a shortage of tarpaulin.”
A trader said as tarpaulin once used during the monsoon will become unusable after it comes under the sun, so a number of importers are piling up stocks to sell the product after monsoon.
The difference between the prices in Birgunj and bordering Indian town of Raxaul is almost Rs 400 per unit. “These products get more expensive when shipped to areas that need the most.”
Published: 18-05-2015 08:59