Government Increases Excise Duty on Tobacco Products in Economic Bill 2083/84
Summary
The Nepalese government has raised excise duties on various tobacco products, including cigarettes, bidis, and electronic cigarettes, in the Economic Bill 2083/84 to discourage usage and increase revenue.
Key Points
- The government increased excise duty on cigarettes based on their length, with rates ranging from Rs 1845 to Rs 4578 per thousand sticks.
- Excise duty on electronic cigarettes (vapes) was raised from 40% to 55%.
- Taxes on khaini, gutkha, jarda, hookah flavor, bidis, and processed tobacco were also increased.
- The tax rate on raw tobacco and tobacco residue remains unchanged at Rs 130 per kg.
