Nepal’s Supreme Court has stayed a controversial customs duty order issued by the Balen Shah-led administration that imposed taxes on daily consumable goods brought from India through the Indo-Nepal border if their value exceeded NPR 100, roughly ₹62.
The court announced the decision after hearing a writ petition challenging the legality of the order. Petitioners argued that the rule violated provisions of Nepal’s Customs Duty Act, 2024, and created unnecessary hardship for citizens living near the border who depend heavily on small-scale daily purchases from India.
The order had quickly sparked public outrage and criticism across Nepal, especially among traders, border residents, and consumers. Many people claimed the policy would increase prices of essential items and negatively impact local livelihoods. Social media users and opposition voices also criticised the move, calling it impractical and harmful for ordinary citizens.
The Balen Shah-led administration, often referred to by local media as Nepal’s “Gen-Z government” because of its youthful leadership and modern governance approach, defended the order as an attempt to regulate imports and protect domestic markets. However, critics argued the sudden implementation lacked proper planning and public consultation.
The Supreme Court’s intervention has temporarily halted enforcement of the customs duty order while the matter remains under legal review. Analysts believe the case could become an important test for the government’s economic and border trade policies in the coming months.