Shrink caps on liquor bottles mandatory

Kathmandu, December 3

The Inland Revenue Department (IRD) has urged liquor producers to use transparent plastic shrink caps on liquor bottles. The new shrink caps that the government has asked the producers to use will not only protect the excise duty stickers that are pasted on the caps but also minimise the duplication of stickers.

The IRD has directed liquor producers to mandatorily use plastic shrink caps from January 15.

“There was always a chance of the excise stickers being damaged or the stickers being duplicated and tax payers were also suffering due to the duplicate stickers. So the government has implemented this new provision of shrink caps,” informed Yagya Dhungel, spokesperson for IRD.

According to Dhungel, the plastic shrink caps cannot be reused so we can control revenue leakage too. As per the provision of Excise and Liquor Act 2000, the IRD has urged all liquor producers to use plastic shrink caps from the aforementioned date.

However, the plastic shrink caps are not mandatory for beer, wine and cider bottles for the time being. “In the first phase, the government will implement the shrink cap provision on liquor products besides beer, wine and cider, and in the second phase it will be mandatory for all types of liquor products,” said Dhungel.

The IRD had published a notice regarding the use of plastic shrink caps on liquor bottles in the Nepal Gazette on July 25. Implementation of this new provision was delayed because of the time taken to manufacture the plastic shrink caps.