The Federation of Community Forestry Users Nepal (FECOFUN) has been protesting against the government’s tax policy on community forest users groups.

Binod Sapkota, Province 3 chairman of the FECOFUN, said multiple taxes imposed on community forests by federal, provincial and local governments are unfair and against the spirit of the federal ruling system.

The Kavre chapter of FECOFUN submitted a memorandum to federal Finance Minister Yuba Raj Khatiwada a few weeks ago to reconsider the government’s tax policy on community forests nationwide.

On Monday, the federation staged a symbolic protest at a function attended by Khatiwada in Panauti, Kavre. Sapkota said the protest aimed to draw Khatiwada’s attention to the issue.

The federation has demanded the government to scrape off multiple taxes imposed on community forests by the federal, provincial and local governments, and for the three tiers of government to stop interfering in the matters of community properties. The federation has demanded an amendment to the laws imposing excessive taxes on community forests.

According to the tax system prepared in the federal set-up, community forests have to pay up to 65 percent of their total income to the federal, provincial and local governments under various headings.

“The dual tax issue can be solved by amending the laws. Ten percent tax is imposed on the sales of Sal and Khayar outside the community. It had been imposed in the past as well,” Khatiwada said. “Since the provincial government has decided to levy taxes on community forests, the issue should be resolved at the provincial level.”