Cigarettes, liquor to get dearer

KATHMANDU, July 14: Price of cigarettes and liquor will increase from Friday, as the government has increased excise duty on these products. Vehicles, however, will not see price rise as the government has left tax rates on vehicles untouched.

The budget for Fiscal Year 2015/16, which Minister for Finance Ram Sharan Mahat presented on Tuesday, has raised excise duty on cigarettes by up to 11 percent and on liquor by up to 10 percent. The government had increased excise duty on cigarettes by Rs 500 per 1,000 sticks and liquor (50 UP) by 49 percent last year.


"Though tax rates on most of the products have been left unchanged, the government has slightly increased excise duty on cigarette and liquor," Revenue Secretary Nabaraj Bhandari told Republica.

The government, however, has kept tax on vehicles unchanged. Last year, it had increased annual registration charge on vehicles. The government levies 60 percent excise duty on four-wheelers and 40 percent on two-wheelers.

Earlier, automobile dealers had urged the government to keep taxes on automobiles unchanged.

"The budget seems encouraging as it has addressed most of our demands," Anjan Shrestha, vice president of Nepal Automobile Dealers Association (NADA), told Republica. "The government should now put focus on implementation of budget programs."

Related story

Police seize smuggled cigarettes