Nepal’s government has decided to replace the ‘reference price’ system with the actual ‘transaction value’ for customs duty assessment to curb revenue loss due to under-invoicing.
Deputy Prime Minister and Finance Minister Vishnu Prasad Poudel stated that the government has decided to eliminate the ‘reference price’ system in customs valuation and instead base duties on the actual transaction value. He explained that the reference price system is now outdated and customs duties will be applied based on the transaction value, helping to address issues like revenue leakage caused by under-invoicing.
Speaking at the National Assembly’s Legislative Management Committee, Minister Poudel clarified that a new customs bill has been introduced to modernize the customs system, making it transparent and aligned with international standards. The government is committed to using technology to strictly control customs evasion and leakage.
The new bill aims to facilitate and secure Nepal’s international trade, protect domestic industries, promote exports, ease legitimate trade, and control illegal commerce. Additionally, the law is necessary to implement provisions of the amended Kyoto Convention ratified by Nepal.
This article was originally published on bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
