First Time in Nepal: King, Crown Prince Pay Tax

News of the week: King Gyanendra and his son Paras are stopped from evading tax for the first time in history.

By Bishnu Budhathoki
the Kathmandu Post (here is the original story)

Dec 8- Probably for the first time in the history of Nepal since the founding of the Shah dynasty 238 years ago the King and Crown Prince have been made to pay tax. The Customs Office at Tribhuvan International Airport (TIA) on Wednesday (8 Dec) charged Rs 53,739 as duty and tax on 50 pieces of torch light that came recently from the US in the name of King Gyanendra. The office also charged Rs 77,193 in customs duty, demurrage charge, tax and fine earlier when royal palace officials reached TIA to acquire a ‘Hunting Trophy’ that came from Vienna, Austria, for Crown Prince Paras, an official said, preferring anonymity. “We released the torch lights and the Hunting Trophy after slapping Rs 130,702 in customs duty and other charges,” the official said. The 19 kg parcel containing 50 pieces of black rechargeable torch light had arrived at the airport Customs Office from the US in the name of “the King of Nepal” through courier service recently. The Hunting Trophy had arrived on September 10.

Following restoration of democracy in the country in April, the reinstated House of Representatives had made a historic proclamation on May 18 declaring that all royal property as well as the income of the king and royal family members would be taxed. The customs official said, “This is the first time in the history of the country that tax and other charges have been slapped on goods imported for the king and royal family members.” If there is continued support from political parties, civil society, civil administration and the government, no one will be able to evade taxes and customs duty in future, he added.

On Wednesday, officials from the palace reached the Customs Office and produced letters from the Department of Commerce (DoC) and invoices amounting to 2,245 Euros (Rs 214,105) for the Hunting Trophy and US$ 2,233 (Rs 159,972) for the torchlights. The office charged Rs 77,193 tax on the Hunting Trophy including 15 percent customs duty, 2 percent insurance charge, 1.5 percent local tax, Rs 1,607 demurrage charge. On the total sum 13 percent VAT was charged before releasing the trophy, the source said.

Background Info:

Crown Prince’s ‘hunting trophy’ at TIA

Nov 28 – A parcel containing “Hunting Trophy” that came from Vienna, Austria, in the name of Crown Prince Paras remains unclaimed at Customs in Tribhuvan International Airport for the last 79 days. The 56-kg parcel arrived on September 10 by Gulf Air cargo. A few days later, some officials from the palace had reached the custom office saying they were sent by the Royal Palace to receive the parcel. “But they returned empty-handed when we asked for the invoice so that we could charge appropriate customs duty,” said an official. After the restoration of democracy in April, the reinstated House of Representatives made a historic proclamation on May 18 declaring that all royal property and income would be taxed. According to customs regulations the consignee should claim goods from the customs within seven days of its arrival. Crown Prince Paras and Princess Himani had visited Vienna on March 19 and gifted a pair of rhinos to the Austrian government.

When asked about the purpose of the letters from the DoC, the official said the Customs Office needs the letters in order to release goods that do not have Letter of Credit and self-declaration form. “We cannot release such goods without taking consent from the DoC,” he added. Meanwhile, the 56 kg Hunting Trophy packed in a wooden box, which arrived by Gulf Air cargo had remained unclaimed at the Customs Office for the last 88 days. According to the official, the trophy is a round, gold-plated item. A few days after the trophy arrived, some officials from the palace had reached the Customs Office to collect the parcel. They said that they were sent by Sagar Prasad Timilsina, chief of the Private Secretariat at the Royal Palace. They, however, returned empty-handed after the Customs Office asked for an invoice to charge necessary customs duty.

According to the Financial Act, if the concerned person fails to collect goods from Customs Office within seven days of arrival, s/he can claim it within three months by clearing all customs duty and demurrage charge. Crown Prince Paras and Crown Princess Himani had visited Vienna on March 19 and gifted a pair of rhinos to the Austrian government.

Published by UWB

Pioneering blog from Nepal...since 2004.

51 thoughts on “First Time in Nepal: King, Crown Prince Pay Tax

  1. Well, this was bound to happen. But I feel sad that the palace is still given free lunch and millions of rupees: tax payers’ money. We earn the money and they take it as salary. What the hell Gyanendra and Paras do to get that money? If they can get, why can’t I get the same facility? What’s wrong in me? Why don’t they get into competition? I get frustrated when I think about this. What’s happening with those thousands of ropanis of lands that these bau chhora own throughout Nepal? Royalties must be barred from enjoying these extra and illegal privileges.

  2. Well said kumar, King G has no power what so ever, he is jobless. Why has he been given salary? This is disgusting. He should not be paid money for bedding with dozens of “Tarunis” in the palace. If he is getting money for that, he is the WHORE KING

  3. Well Done !

    But it is not enough. Tax should be charged in their whole property and allownaces. His overall bank balances, lands, bunglaws………….. almost all property should be found out.

    There need not to be more proud in this much. But also it can be taken as good begining. Anyway, hope positive that day is not so far.

  4. great event, an unprecendeted one. which signals a big structural change in Nepal which is a very good start. The bigger question is then how is the tax-payer’s money used? Will it be all siphoned off to pay the maoists who are in the cantonement or are we going to see better roads, uninterrupted electricity supplies, elimination of corruption, free eduction for everyone who needs it, and overall improved governance?

  5. Elimination of corruption in Nepal, government bodies openly asking the bribe in each step you move even today..

    are you kidding??

    People yesterday also used to ask to himself why he was paying taxes although he was not getting assurance of basic needs, and even security??? Today also same…nothing change except KALA GAE GORA AE..

  6. Sagarmatha!

    This is not only the condition of our country. Even in developed countries, there is still the desease of corruption. What should anyone do if his salary is not enough to run his family with minimum satisfaction ? And, in the case of corruption, we are also responsible to get it increase.

    The major sources are not those ordinary employees but the ministers, high level officials and the heads of the state are the vital viruses of the corruption.

    The main thing is that our whole system is corrupted. That’s why, if u or me or any pure person also enter there then definetely one day he will also become ill from that desease only the time may differ. So, lets raise voices to cure the system or to change the system rather than blaming so ordinary people.

  7. Well it’s good that some changes are coming into action. I had thought that Who would give Damn about this things. But this proves that changes are coming for good. Aba k raja k janata…sabai barabari…

    Expecting much changes in action not only words.

  8. Afno kura,

    You are 100% right…
    But it doesnot mean we have to continue the same systems in the government….if we continue then what is the meaning of “New Nepal”…is that only for politicians with just changing the words or some person…

  9. Sagarmatha,

    U too r right. I am also in the against of continuing the same system. I also like to see a “New Nepal”. So, i think that there must be much more discussions on these issues. And, i also like to request UWB, to raise issues on such major topics, too.

    What do you think about the change in overall system and how it could be done? What may be our contributions?

    And Mr. Sagarmatha,

    The meaning of my earlier comment is that, “if we have to clean our room completely, then we should start from the ceiling not from the ground.” If we started from the ground then till we reach to the ceiling, there will be the same condition of the ground.

  10. So what??????

    kum bahadur ate more than 2.7 million and not he free.
    Ganye pays 0.1 million tax and big thing to every body

    What the hell is wrong with Kantipur and UWB?

  11. Okay, so yet another historical development, huh! Sounds like a joke but histories are being made here on a daily basis. Pretty impressive! But wondering since I saw this news why that costom official likes to remain unnamed? Is he afraid of the palace? or afraid of possible revenge from Paras? If that is the case, very bad. He needs to be assured that Nepali people will save from and kill anyone who try to attack him. People will drag them out of palace and slaughter them.
    By the way, thanks to Mr. Budhathoki for brining this wonderful news to us. When will you write about kings properties confiscated and people sending him Nirmal Niwas (if that really belongs to Gyanendra).

  12. I suppose this is a symbolic step forward. Now with the King being accountable, the same pressure and the same level of scrutiny needs to be put on the political leaders as well to be open and transparent.

  13. I hope people won’t sit around and gloat over this for too long though. Because I got news for all of you: we have bigger and more important problems then Gyendra paying tax.

  14. Budai,

    “Now with the King being accountable…”

    Stop there and read this news from Hindustan Times:

    Who’ll pay Nepal King’s $700,000 junket bill?

    His wings have ostensibly been clipped by a people’s revolt but Nepal’s King Gyanendra still continues to remain above law, the latest poser being who will pay the whopping Nepali Rs 48.6 million bill he ran up on junkets abroad.

    The monarch kept the best Boeing of the national carrier at his disposal for nearly a month after he seized power with the help of the army last year and went on a mysterious tour of African countries, like South Africa and Burundi, whispered to be on the advice of his astrologers.

    It caused the Royal Nepal Airlines, already beset with liabilities worth Rs 1.63 billion, further losses worth millions and great inconvenience as it had to cover its destinations in seven countries with just one aircraft.

    The national airline, now renamed Nepal Airlines to distance itself from royalty, has just published a white paper, detailing its position.

    According to the report, the palace still owes it Rs 48.6 million for the African safari.

    Though Finance Minister Ram Sharan Mahat has been rattling his sword, warning the government will take strict action against businessmen who have not paid their banks loans, the minister, whose party till recently supported monarchy, is silent on what action he proposes to take against a defaulting king.

    Here is more from Hindustan Times

    Now stop bullshitting and talk sense. Gyanendra and company cheated us, plundered the country. And you are trying to divert the attention saying “now with the King being accountable…”

    Yes, we must keep track of the behaviour of SPA and Maoists, but don’t try to save your king.

  15. P Mantra you clown, I am not trying to save the King! I was just pointing out that G paying tax is a good step forward.

    “Gyanendra and company cheated us, plundered the country”

    What about Sujata and Girija Koirala’s fisco with Lauda and RNAC uh? I suppose that is okay? If you apply a stardard to someone it needs to apply to everyone – that is my point!
    DEAL WITH IT.

  16. P Mantra..Do you know that Hindustan Times is a Congress (Sonia) paper representing the Congress and Left supporters of the present Indian government(Yechuri et al) . Sonia is influenced by the church and hence Nepal becomes so-called “secular” and Leftists (Yechuri) want to bring in Maoists hence India government compels SPA to make a deal with Maoists..

  17. So P Mantra that is why such articles in Hindustan Times which a fool like you is copy-pasting here…

  18. Shantikumar:

    Irrespective of Hindustan Times credentials it is no specualtion that Gyanendra did in fact use RNAC for this mysterious unjustified trip to various African countries and it cost the country alot of money! We don’t need Sonia Ghandi or Sitaram Yachuri to tell us that.

  19. good on you paras. our leader and maoist should learn lesson from paras. I think he already start working on concept of new nepal. But what about our leader. Old mentality hasnt changed yet. They still enjoying luxirous goverment vehicle. Maoist leader having holiday in luxirous hotel in nepal enjoying the tax payer money.
    Paras paid the tax. Now its time for Prachnada to enjoy the money paid by paras and rest nepali.

  20. ARGHAKHANCHI, Dec 8 – The seven parties performed the final rites of two children who died from starvation in Arghakhanchi’s Dhakabang VDC, Darimpata.

    In what comes as a shocking tale of neglect, brother and sister Ram, 4 and Rama, 6, cried to death after their father Cham Bahadur Pariyar abandoned the family some four years ago and their mother was out of the home in search of food.

    The two children who had been crying for the last four days longing for food finally died of starvation.

    Pariyar, the father of two, disappeared some four years ago and the mother had gone been out in search of food when the two children died suffering from extreme hunger.

  21. I would be most happy if Girija an dhis corrupt daughter including the Maoist top leadership would begin paying taxes to the government. What about the millions stocked up in German banks of Sujata? What about the condos and flats of Baburam and Prachanda in New Delhi? What about paying tax now?

  22. oye santikumar,

    nepal is not any worse off because of gyane, prachande and girja.

    it is so because of dim witted people like you, who feeds on the stupidity.

    do you even have any idea, what have you written in you last comment?

    do you even have a slightest idea on indian politics?

    sad, you got to learn to compose words, and what you come up with– utter nonsense. nepal would be better off, if likes of you would just shut up.

    buy some buddi in ratna-park, usually kafalwala sells it, a kilo a rupee. good luck

  23. This reflects that the palace has always worked on the will of the nepali people, they were asked to pay tax and they did pay without making a fuss out of it. Still having hold on the army the king could have just sent some generals to bring the items to the palace premise from the airport and no d!ck could do anything but instead he decided to pay. we should not forget that if prachande can be this effective with 10,000 armed men, remember what the king can do with the army (even if 20% decides to support him) that still supports him if he wishes to foul play.?

  24. Rosha …would it not be a good practice if Prachanda and his goons also pay taxes on the extorted money???

  25. OK Fosha..you are a genius and I am dimwitted..but can you deny that Sitaram Yechury is a Communist-Leftist and is part of the present Indian government and do you deny that Sonia Maino is a Catholic?????

  26. News Corrections:

    First Time in Nepal: King, Crown Prince Pay Tax

    Dec 8- Nepalese people’s spirit enforced for the first time in the history of Nepal since the founding of the Shah dynasty 238 years ago the King and Crown Prince have been made to pay tax… 🙂

  27. As per the best of knowledge, HM Gyanendra being the head of state had all in his power to go wherever he and his government wanted.

    But to cut the story short, HM Gyanendra and his people spent some money and brought power to Nepal (visibly HM Gyanendra’s fantastic speech at the Dhaka Summit of SAARC) and almost single handedly bringing an alliance of all in favour of Nepal against India…result: Observer stauts for China and Japan in SAARC.
    And now, Hindustan Times, Wagle (another goon who has somehow managed to open up a blog and feels big but has a brain of pig), Kantipur et al. crying in favour of India to demean the steps taken by HM G.

    And talk about his other awesome speeches at Tunis at the Internet summit. Prince Paras’s goodwill visits to Europe. And Surya Bahadur Thapa and all doing great work in foreign visits.

    Now, lets see what has the SPAM terrorit government achieved…spent hundreds of millions (yes exactly) in foreign trips…the amount being much larger than what the HM Gyanendra government spent…and what do you get in return…a humiliating defeat at UN and well everywhere you go, you are rewarded as being said: OH NEPAL…the same place where terrorists and government came to power?

    haha…so much for your dim witted politicial knowledge here. I know you people are a handful here because elsewhere I see a full bunch of enlightened Nepalis who have astute knowledge what the terrorists and the bunch of hooligan politicians are upto.

    Here I am at point where I feel you all should keep shut instead of talk nonsense over here. Grow up brains, learn some politics, instill some ideas and ethics and then TALK!

  28. Just to tell you all…

    RSS, shantikumar, encrust…Keep up the good work…if you let the SPAM and terrorism have their last say…you would be doomed by history.
    Don’t lie down and accept terrorism by SPAM. Wake up, stand up and keep fighting for your justice. And we will be there to support your case!

  29. noname:
    While I am no fan of SPAM, I have to disagree with some of your assertions. I support a ceremonial monarchy and I have battled pro-republicans on this site no to end. But people like you make it very difficult to advocate the idea that the institition of monarchy is still an important in Nepal’s socio-political context.
    Let me just point out the areas in which you have totally missed the boat:
    1. Brining China into SARCC as an observer by pissing off india is a big diplomatic blunder and it certainly doesn’t bring any power to Nepal.
    2. Gyanendra’s trip to Doha and Tunis was the biggest waste of time. While the country was in turmoil G left and went on these trip that served no strategic purpose to Nepal. Instead it cost the country millions for nothing.
    2. I disagree that the SPA’s foregin trips have costs more than Gs. Where did the SPA leaders go? India – thats it right? No my friend you need to recalculate your numbers again.
    3. I believe it was Gs fault that the Maoist now have this much legetimacy and prominance. Had he not done the Feb 1st move the SPA and the Maoists would not have joined hands. People were still behind the monarch. But because of Feb 1st it becaome Gyanendra vs. everyone else. He polorized the country and the Maoists gained legetimacy because they helped the SPA fight for democracy. Bad move! But with people like Tulsi Giri and Bharat Shimba around Gyanendra and G being an idiot what could you expect.

    I am not big fan of the Maoists and I doubt they will even keep their word. If they loose the elections I am sure they will just break in a recapture their guns and continue to cause heyam. Even now with all the money the govt. is giving them they are still exthorting. I don’t think these goons are tamabale.

  30. Bhudai-elements like noname and there are many are the reasons why monarchy, even a ceremonial one, is too risky. Imagine there are plenty of nonames within the palace and the army. It will take years to weed them out from the army.

  31. Kirat..once you welcomed the King’s takeover..now you are rabidly against anyone who looks to have any leanings towards him..YOU are TOO FICKLE MINDED to really be taken seriously…You talk in the name of Democracy but you want to weed out people from jobs for their political views..THIS IS JUST LIKE the STALINist PURGES..Have you been indoctrinated by the Maobadi..Learn to be more mature for the sake of our country…

  32. shantikumar-don’t blame me, blame the king and his ilk for turning us into anti-monarchists.

  33. I have to agree with Kirat on this one. G made a mistake on Feb 1s and got us to where we are today.
    I knew Feb 1st was a bad move from the begining because taking over in a military coup is never a good idea and its never worked anywhere.

  34. Time to bid Mr Shah goodbye. I mean, if people are so divided about him, why keep him as a symbol of unity? It defeats the very purpose.

  35. Don’t celebrate yet! Just becuase the King and Paras paid the tax.
    Does anyone have any information where this tax money came from? Did they pay the tax from their pocket? I am sure they didn’t. If the father and son go to airport and pay the tax and claim their consignment and return to their home, only then we should celebrate.
    Somebody else from the palace went to the airport, took the money from the fund that the government is providing to the Palace and brought the hunting trophy to the king. I don’t see this any celebration time yet.

  36. Where did SPAM leaders go? Hmmm…Europe, US and stayed there from days to weeks to months. Redo your calculations.

    No use arguing about some of you ponies here. The brains are elsewhere. Keep barking.

  37. noname be specific. all i know is the conference that SPAM attended in London and the fews trips to India. Both of which were important and fruitful than the wild safari trip G sarker made all around africa. Is it not so?

  38. noname:
    I like how you have not bothered to give me a rebuttle on any of my points and instead end with the classic “no use arguing with phonies here..”

  39. You actually have no facts. You are living in a fictional words. The Mao terrorists went to London and they met the Communists there…none of the governments or any officials of any government of Europe met these terrorists.
    What success came out of those terrorists being in Lodon?

    Now, coming back to reality…your ministers and their honchos went to US and other places in Europe (and still are going there) and stayed there for days, weeks and months…many failures out of it…one was just that Nepal had a shameless defeat in the UN SC elections…not that Nepal could have ever beaten Indonesia with the terrorists in power in Nepal…but still the diplomacy could have been acted in a much better way and policies and strategies could have been framed better and Nepal could have withdrawn or something
    The last time Nepal did something worthwhile at the UN or foreign level or international level was all under the rule of the Kings or the ministers under him.

    Listen you ponie (not phonie..Learn some english first)…you have a pea sized brain that argues for the sake of it…that is why, i am done with idiots like you all.

    grow up some grey matter in the brain and not down there.

  40. An example of how royal palace and monarchy in our country used to plunder Nepal. They used to import all sorts of “mouthwatering” fruits from all over the world and pay no import duty or tax. Plus, (Royal) Nepal Airlines would bring those cursed fruits for the palace for free! Plunderers, when will you be cursed! Eat that apple.

    Fruits for royals rotting at TIA

    BISHNU BUDHATHOKI

    KATHMANDU, Dec 16 – Fruits imported by the Royal Palace have remained unclaimed at the Customs Office at Tribhuvan International Airport for over seven days.

    According to a source, four cartons of fruits were brought by a Nepal Airlines flight about a week ago from New Delhi. Later, some officials from the palace had reached the Customs to collect the fruits. But they returned empty-handed when the Customs Office asked them to produce a delivery order, which is required to pay customs duty. “We need a delivery order to release such goods,” a customs official said preferring anonymity.
    However,officials could not reveal what types of fruits were in the cartons.
    According to the Finance Act, any consignee has to clear 8 percent agricultural development tax and 1.5 percent local tax before collecting any agricultural product.

    “Before the April uprising, such goods were sent directly to the palace without even considering customs duty and other charges,” the official said.

    According to another government official, the royal palace used to import tropical fruits like Rambutan, Mangosteen and Dorian from Thailand and Misti Dahi (sweet curd) from Bangladesh.

    “Besides, it used to import delicious Frolic dog foods from Germany,” he said. Frolic is a well-known and very successful brand of Masterfoods in Germany with a broad range of dog food products.

    The palace used to bring women’s blouses and other clothing from Karol Bagh. Similarly, several mouth watering fruits, medicines and pigeon anklets also came from India.

    Before April 2006, such goods were imported through the “diplomatic cargos destined for Narayanhiti Royal Palace that used to be delivered to Nirmal Niwas, Jeewan Kunj and the Royal Palace,” he said.
    Not only was customs waived, even NAC (then RNAC) carried every royal cargo for free, said a cargo official.

    “Army personnel or officials from the palace would reach the airport along with army vehicles to fetch such goods,” another airport official said.
    After the restoration of democracy in April, the reinstated House of Representatives made a historic proclamation on May 18 declaring that all royal property and income of the king, including royal family members, would be taxed.

    The palace had collected 50 pieces of rechargeable torch lights and a Hunting Trophy by paying Rs 130,702 customs duty and other charges last week, which was the first recorded case of the royal palace paying customs in the history of this country.

    http://www.kantipuronline.com/kolnews.php?&nid=94603

  41. I had never though that slapping tax to royal imports would mean people knowing about what kind of things palace brings in to Nepal. All sorts of things, this is amazing. From rechargeable torch lights to Hunting Trophy to Mangosteen. Saala chor haru, yaha janatalai bihan beluka khana chhaina, uniharu lai mangosteen khanu parne! That too imported! People are hungry, and they are bring dog fruits. I can’t express my anger and dissatisfaction with this institution called monarchy in words. Knock them off the palace! Now.

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