Government Increases Excise Duty on Tobacco Products in Economic Bill 2083/84

Kathmandu. The government has increased the excise duty on tobacco products through the Economic Bill presented for the upcoming fiscal year 2083/84. By increasing the tax rate on cigarettes, bidis, khaini, gutkha, and electronic cigarettes (vape) compared to last year (2082), the government has adopted a policy to discourage tobacco consumption and increase revenue.

According to the new bill, the tax rate has been increased based on the length of cigarettes. For cigarettes up to 70 mm, the tax has been increased from Rs 1792 per thousand sticks to Rs 1845, while a tax of Rs 2490 has been set for cigarettes between 70 and 75 mm. Similarly, for cigarettes longer than 85 mm, the tax has been increased from last year's Rs 4410 to Rs 4578. In the case of cigars and cigarillos, the tax has increased from Rs 31 per stick to Rs 35, which will certainly make cigarettes more expensive in the market.