Liquor, cigarettes, tobacco to be dearer

Kathmandu, May 29

Prices of cigarettes, tobacco products and liquor are set to rise next fiscal, as the government has hiked excise duty on different types of cigarettes, liquor and tobacco products in the budget for fiscal year 2017-18 that was announced today.

Presenting the new fiscal policy in the Parliament, Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara announced the hike in excise duty of cigarettes, liquor and tobacco products.

The budget for fiscal 2017-18 has increased excise duty on cigarettes without filter by Rs 28 per 1,000 units to Rs 374. Excise duty on cigarettes with length of 70mm to 75mm has been increased by Rs 92 per 1,000 units to Rs 1,116. Excise duty on cigarettes of 76mm to 85mm length without filter has been hiked by Rs 120 per 1,000 units to Rs 1,456. The new fiscal policy has also increased excise duty on cigarettes of more than 85mm length with filter by Rs 187 per 1,000 units to Rs 2,055.

The government has also increased excise duty on packaged chewing tobacco products by Rs 42 per kg to Rs 462. Excise duty on tobacco with lime has been increased by Rs 23 per kg to Rs 253. The government has also increased excise duty on cut tobacco by Rs 23 per kg to Rs 253.

The government has also increased excise duty on liquor with 48.5 per cent alcohol content by Rs 91 per litre to Rs 1,003. Excise duty on liquor products with 48.8 per cent alcohol content has been increased by Rs 68 per litre to Rs 748. Excise duty on liquor with 39.94 per cent alcohol content has also been hiked by Rs 63 per litre to Rs 997.

However, these changes in taxes will come into effect only in the next fiscal year though they have been endorsed by the Parliament a month before the new fiscal year 2017-18 begins.