Government Hikes Excise on Cigarettes and Liquor by Up to 10%

Kathmandu — Finance Minister Dr. Swarnim Wagle has announced various provisions for voluntary compliance and expanding the tax net through the budget.

Wagle said a provision has been made to levy an equity fee at a minimum rate on education and health services provided by the private sector, to help build education and health infrastructure and expand services in remote areas.

The Finance Minister said value added tax will be levied at a subsidised rate on the consumption of more than 50 units of electricity per month sold to final consumers.

He said the customs duty on electric vehicles, which has been levied on the basis of peak power capacity, will now be levied on a value basis. He said a clean infrastructure investment fee has been levied at the import point for the domestic production of such vehicles, the construction of charging stations, and battery management.

Wagle said quality spirit production and maturation work will be encouraged to promote the export of Nepali-brand liquor. He said arrangements have been made to register microbreweries as liquor industries and bring them within the excise net from the upcoming fiscal year.

The Finance Minister said he has increased the excise duty on cigarettes by up to about ten percent and on liquor and beer.

He said an umbrella law will be brought to make the mobilisation of non-tax revenue effective.