Nepal: Kathmandu Valley faces shortage of potatoes and onions after traders halt supply
Fresh Common Potato
Regulation & Compliances
Market & Price Trends
Published Dec 8, 2023
Traders in Kathmandu are protesting the government's decision to impose a 13% VAT on imported potatoes, onions, and other vegetables, leading to a shortage of these items in the market. The Potato Onion Traders Association has stopped supplying these products and warned retailers of fines up to Rs 100,000 for selling them. The government's decision to tax these essential food items has led to protests, and the Ministry of Agriculture and Livestock Development is working to address the traders' concerns by distinguishing between locally produced and imported items for tax purposes.
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Traders launch protest against the government’s decision to impose VAT on these agricultural products KATHMANDU, Dec 7: A shortage of potatoes and onions has started to appear after traders stopped selling the vegetables in the Kathmandu Valley, citing the government’s decision to impose value added tax (VAT) on these agricultural products. Ramchandra Sedhai, a vegetable seller at the Dhumbarahi Vegetable Market, said they are unable to sell these agricultural products after the Potato Onion Traders Association (POTA) stopped supplying the products to retailers. “The Association has warned to slap fines of up to Rs 100,000 if any retailer is found selling the products,” Sedhai said. Potatoes and onions were previously untaxed. The government through the budget for this fiscal year announced to levy VAT on these daily essentials. “It is not fair that the government adds up the burden of tax on these products which are largely consumed in Nepali kitchens,” Sedhai said. Potatoes, ...