The Federation of Community Forest Users Nepal, the umbrella organisation of community forest users’ groups, launched a protest against the government’s tax policy in Udayapur district on Monday.

The federation took out a protest rally that later converged into a mass meeting in Gaighat, the district headquarters of Udayapur to exert pressure on the government authorities to reconsider the tax policy.

The federation has claimed that multiple taxes imposed on community forests by the federal, provincial and local governments were unfair and against the spirit of federalism.

Around 5,000 consumers of various community forests in Udayapur came to the district headquarters to participate in the protest rally on Monday.

“We are compelled to launch this protest as the federal, provincial and local governments are collecting multiple taxes on the community forest,” said Bharati Pathak, the central chairperson of the federation. She blamed the government of destroying forests in the name of scientific forest management.

“The government wants to destroy the forests which are preserved by the local consumers. The government should change its policy on the forests conserved by the consumers,” she demanded.

According to the federation, the tax system prepared in the federal set-up imposes up to 78 percent tax on the community forest by the three tiers of governments under various headings.

According to the tax policy, the federal and provincial governments each collect 15 percent tax while the local unit imposes 10 percent on forest resources.

Moreover, the community forest should pay 13 percent VAT, 25 percent on income, two percent export tax and deposit five percent in the forest development fund.