Supreme Court Orders Refund of Illegally Collected Tax in Road Project

Kathmandu. The Supreme Court has issued a mandamus to refund 8.2 million 19 thousand 818 rupees illegally collected from a Chinese construction company for transporting construction materials used in the Muglin-Pokhara road expansion project. The court has also ruled that it is unconstitutional for local levels to collect 'export tax' or 'sales tax'.

A joint bench of Justices Kumar Regmi and Shree Kant Poudel issued a mandamus to return the amount illegally collected by Shuklagandaki Municipality of Tanahun from the Chinese construction company. It has also ordered not to impose or cause to be imposed any fee in the name of 'local export tax' while transporting goods for road construction. The full text of the Supreme Court's verdict, issued on Jestha 23, was recently made public.