Nepal Lever, a subsidiary of Hindustan Lever, has reported a roughly 50 percent drop in net profits in the fiscal year that ended mid-July 2001. Profits fell from about Rs 120.5 million in July 2000 to Rs 68 million this year, according to a company statement. The lower takings were largely due to a 27 percent drop in export turnover compared to the year before. Lever's toothpaste exports stopped in March when India changed the duty regime, charging it on the Manufacturer's Retail Price (MRP) and not transaction value. The revenue from falling toothpaste sales was about Rs 50 million. Nepali exports were also made uncompetitive by India's Central VAT deductions on raw material and packing duties available to Indian producers. Still, Lever's domestic sales rose by 21 percent to Rs 704.3 million.