Government Expands Excise Duty Coverage

Published On: June 3, 2023 04:30 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, June 3: The government has expanded the coverage of excise duty to include 34 types of goods. The excise tax has been increased by incorporating items that were previously not subjected to excise duty.

Through an amendment to the Economic Bill of 2080 BS, the government has introduced excise duty on cold drinks, shaving machines, cosmetics, spoons, forks, and other items. Additionally, a 30 percent excise duty has been imposed on electronic cigarettes.

A specific excise duty of Rs 25 per liter has been levied on soft drinks. Consequently, such beverages will now incur an excise duty of Rs 25 per liter under the new government arrangement.

Items that were previously exempted from excise duty will now be included, attracting an additional charge of Rs 25. According to the Internal Revenue Department, popular cold drinks like Coke, Fanta, Sprite, Dew, Pepsi, and others will become more expensive due to this arrangement.