Kathmandu — The Ministry of Finance has directed provincial and local governments not to impose taxes, fees, or charges on goods transported through their territory when the route is used only for transit.
The ministry issued a clarification stating that collecting such charges violates the constitution and existing laws. Officials emphasized that goods moving from one district or local government to another cannot be taxed simply for passing through.
The directive was sent to provincial governments through the Office of the Prime Minister and Council of Ministers, and to all local governments through the Ministry of Federal Affairs and General Administration. The circular asked authorities to ensure that farmers, traders, and businesses are not burdened with extra costs that could harm economic activity.
The ministry reminded all levels of government that transit routes used only for transportation must remain free of taxes or fees. It requested the relevant ministries to inform provincial and local bodies about this requirement and to enforce compliance.
According to the ministry, the decision was made on December 8 by the finance minister and has already been communicated to all concerned agencies. Complaints had surfaced that some local governments were charging fees on agricultural produce and goods transported from other areas, prompting the ministry to act.