Dhunibesi taxes scrap despite constitutional ban
Summary
Dhunibesi Municipality continues to levy scrap tax on materials leaving the Kathmandu Valley despite a constitutional ban on taxing goods simply because they cross local borders. Traders and experts say the practice is legally questionable and is squeezing the scrap business, while most Valley municipalities have stopped collecting the tax amid court disputes.
Key Points
- Dhunibesi Municipality in Dhading is still taxing scrap leaving Kathmandu Valley, even though several local governments in the Valley have stopped collecting the fee.
- Experts say the practice violates the Constitution and the Local Government Operation Act, which prohibit taxing goods again as they move between local units.
- Kathmandu and Lalitpur have halted scrap tax collection after legal challenges, while Suryabinayak remains the only active municipality in the Valley with a scrap-tax contract.
- Scrap traders say the high tax makes shipments unprofitable and can cause losses of tens of thousands of rupees per truckload.
