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Enewspolar English.MakaluKhabar.com
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Started 2 days ago · Updated 1 day ago

Experts Propose 55% Cigarette Tax Hike for Upcoming Budget

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Experts are urging the government to increase cigarette excise duty by 55% in the upcoming 2026/27 budget, alongside annual tax increases above inflation for all tobacco products. This measure is projected to boost government revenue by Rs. 11-12 billion and significantly reduce tobacco consumption. They also recommended simplifying the current 5-tier tax structure towards a uniform specific excise tax system.

  • The proposed tax hike aims to increase government revenue by an estimated Rs. 11-12 billion.
  • Experts suggest continuing annual tax increases on tobacco products that exceed the inflation rate.
  • The World Health Organization recommends tobacco excise duties reach up to 70% of the retail price, a target Nepal is currently far from.
  • Recommendations also include implementing a licensing system for tobacco retailers and distributors through local governments.
  • Past tax increases on tobacco and alcohol products over the last three years have been minimal (2-5%), failing to keep pace with inflation and making these products effectively cheaper.

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World Health Organization Nepal Development Research Institute Dr. Jaya Kumar Gurung

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