Multiple Taxation Burdens Commercial Farmers in Bhojpur

Commercial farmers in Bhojpur have been facing difficulties due to multiple taxation system. Farmers engaged in local agricultural enterprises complain that they must pay separate fees to different authorities for the same type of farm, increasing their financial burden.

According to local farmers, registering and renewing an agricultural farm requires payments to the ward office, rural municipality or municipality, the Office of Cottage and Small Industries, and the Taxpayer Service Office separately. Repeated tax obligations for the same farm have left many farmers discouraged.

Local authorities levy taxes based on the nature of the business under their executive decisions. In addition, the Cottage and Small Industries Office charges a minimum tax of Rs 2,100 based on investment capital, while the Taxpayer Service Office requires annual payments of Rs 2,500 for farms in rural municipalities and Rs 4,000 for those in municipalities, said Ramesh Karki, a dairy entrepreneur from Bhojpur–7.

“Farmers are burdened because they have to pay separate fees for the same type of agricultural farm or industry to different state agencies,” Karki said. “Once a fee is collected by one agency, other agencies should not levy additional taxes.”

He added that while the government aims to bring farmers under the tax net, the cumbersome tax procedures are causing problems for residents in remote areas. Local-level tax collection could provide relief to many citizens, he said.

Fanindra Pradhan, ward chair of Bhojpur Municipality–5, said the dual taxation system has created hardships for locals. “People have to pay taxes to multiple offices for operating the same type of farm,” he said. “Municipalities have been collecting taxes based on their own discretion, and in addition, payments are required to the tax office and cottage and small industries office, causing farmers to suffer double taxation.”

The Cottage and Small Industries Office said the number of farms and industries being deregistered has increased recently due to dual taxation and reduced government grants. Acting chief Ramesh Dhakal said that in the last fiscal year alone, 112 businesses—including 89 industries and 23 commercial farms—were deregistered.

Office records show a declining trend in new industry registrations: 591 industries in FY 2077/78, 404 in FY 2078/79, 264 in FY 2079/80, 133 in FY 2080/81, and only 110 registered by mid-July 2081/82.

The decrease in registrations and increase in deregistrations indicate that dual taxation and complex procedures have become major challenges for farmers and entrepreneurs. Farmers and business owners have urged authorities to simplify the tax system and establish a single-window mechanism to promote agricultural enterprises. -- RSS