Fiscal Nepal
First Business News Portal in English from Nepal
Swarnim Budget RSP
KATHMANDU – The Government of Nepal has introduced a new Internal Production and Promotion Protection Fee through the Economic Bill 2083, targeting several imported industrial, agricultural, and dairy-related products, a move expected to increase prices of multiple consumer goods.
The new provision, included in the Finance Bill presented on Friday by Finance Minister Dr. Swarnim Wagle, is aimed at protecting domestic industries and encouraging local production.
Under the revised system, a range of imported goods will now attract additional protection charges on top of existing customs duties.
Key provisions include:
The protection fee also applies to several dairy and food products:
The government said the protection fee will be calculated on the value determined after applicable customs duties are applied, effectively increasing the final landed cost of imported goods.
Officials said the policy is designed to strengthen domestic industries, promote import substitution, and support local producers in sectors facing competition from cheaper foreign imports.
However, market analysts expect the new fee structure to potentially raise retail prices for several consumer goods, particularly in the construction, dairy, and processed food sectors, as import costs increase under the revised taxation regime.
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