The Customs Office has issued a notice to Jagdamba Overseas, owned by Sulav Agrawal of the Shanker Group, directing the company to deposit Rs 10.3 million in evaded revenue after allegedly manipulating ASYCUDA of the Department of Customs.
According to a Nepalkhabar report, Jagdamba Overseas imported a “special type of cigarette designed to be used with electronic devices” by evading taxes worth more than Rs 10 million.
The company, in collusion with customs staff, reportedly tampered with data into the ASYCUDA system, declaring the product as “tobacco containing or reconstituted tobacco” at a rate of Rs 40 per kilogram, even though the law required 40% excise duty based on value.
The evasion occurred during the transitional period after the new Financial Act came into effect on May 29, 2025, which significantly increased excise duties on tobacco products to discourage consumption and boost revenue.
Despite the revised law requiring tobacco sticks to be taxed at 40% of their value, Jagdamba Overseas paid only 70% of the applicable duty, instead of the mandated 143.628%, enabling the consignment to be cleared through the airport.
Internal audits by the Department of Customs revealed that the company had repeatedly underpaid taxes. In fiscal year 2081/82 BS, it imported 1,219 kg of tobacco sticks worth Rs 15.8 million, paying Rs 10.4 million in duties. Notably, in May, the company imported 525 kg worth Rs 6.78 million, but paid only Rs 4.75 million in revenue under the revised law.
Customs Office spokesperson Baburam Ghimire confirmed that the company was formally instructed on November 7, 2025 to deposit the remaining revenue within 10 days. If Jagdamba Overseas fails to comply within the deadline, legal proceedings will be initiated in accordance with customs regulations.
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