Rising import costs of frozen vegetables: Tariffs on commodities such as frozen potatoes increased from 10% to 15% to encourage local agricultural production.
Differential adjustments to nut products: The tariff on shelled cashews was reduced from 15% to 10%, helping processing companies reduce costs; but the tariff on mixed spices (such as curry seasoning) increased from 20% to 30%, promoting local manufacturing.
Significant changes in medical supplies: Products such as urine bags are completely exempt from tariffs, while the tariff on surgical gloves has increased from 5% to 15%, which may affect the price of medical supplies.
Industrial raw materials affected: The tariff on kaolin coated paper increased from 15% to 20%, increasing costs for the packaging industry; the tariff on rubber thread and cord was reduced from 15% to 5%, which is conducive to the development of the textile industry.
These measures reflect Nepal's strategy to promote self-sufficiency while optimizing import dependence. For example, tax increases on frozen vegetables may reduce import dependence, while tax cuts on cashews are expected to boost the food processing industry.
Trade background:
Nepal's major trading partners include India, China, the United States and other countries. It is worth noting that China's trade with South Asia has grown rapidly in recent years-close to US$200 billion in 2024, doubling in ten years, with an average annual growth rate of about 6.3%. In particular, China's import and export trade with Nepal has exceeded 55 billion yuan in the past five years, with an average annual growth rate of 11.7%. In addition, from December 2024, China will provide 100% zero tariff preferences for tariff items to Nepal and other least developed countries in South Asia, which will further facilitate bilateral trade.
If Nepal's new tariff policy is implemented smoothly, importers will need to reassess supply chain costs, and consumers may also face price fluctuations for some commodities. It is recommended that companies with business in Nepal pay close attention to the details and adjust their strategies in time!