Govt forgiving of alcohol and cigarette products

KATHMANDU: The government has been generous with the taxes it imposes on alcohol and cigarettes, both of which have a negative impact on public health.

The government only increased the cigarette tax by 3% when it unveiled the budget for the upcoming fiscal year 2023–2024. Beer and alcohol still carry the same tax rates.

The cost of beer, however, will rise by Rs 10 per bottle. Currently, a liter of beer carries an excise tax of Rs 228. To Rs. 235, it has been raised. As a result, the cost of beer will increase by Rs 7 per liter.

On top of that, the additional seven rupees are subject to a 13 percent value addition tax. Beer will now cost Rs 10 more per 650 ml bottle as a result of this.

The tax on cigarettes has increased by an average of 10% a year over the past 10 years, according to the budget trend.

The budget was raised by 19% last year thanks to former finance minister Janardan Sharma. The growth rate this time, however, was only 3%, the smallest in the previous ten years.

When India and Nepal’s prices are compared, a pack of cigarettes from Nepal still costs more than 100 rupees less.

The tax on cigarettes in Nepal should have been raised in order to stop the illegal importation of cigarettes. The lowest tax increase in recorded history, it is thought, was made in a context involving cigarette manufacturers.

This year, the government has been especially generous in those two areas, despite the fact that taxes on beer and alcohol are raised annually due to their detrimental effects on public health.