Government Increases Excise Duty on Alcoholic Beverages in Economic Bill 2083

Kathmandu. The government has increased the excise duty rate on alcoholic beverages through the Economic Bill 2083, which was published for the upcoming fiscal year. Comparing the old rates published by the Law Commission with the rates in the new bill, the tax on beer, wine, and low-strength alcohol has been increased.

The excise duty on beer has been increased by up to Rs 15 per liter. While it was Rs 240 per liter in the current year, the new bill has increased it to Rs 255.

Alcohol-free beer has seen a 100 percent increase. Previously Rs 45 per liter, it has now been increased to Rs 90. Chyang (country beer) which was previously Rs 48 per liter, has now been fixed at Rs 50.

The excise duty on wine has also been increased. Wine with 12 to 17 percent alcohol, previously Rs 460 per liter, has now reached Rs 490. Wine with more than 17 percent alcohol, previously Rs 535 per liter, has now been increased to Rs 570.

Champagne, sherry, sake were previously Rs 516 per liter, and according to the new excise duty rates, they have been fixed at Rs 540 to Rs 570 (depending on the type).

However, there has been no significant change in the tax on high-quality and high-alcohol content premium brands of hard liquor (whiskey, brandy, rum, vodka), but an increase has been seen in some lower-tier brands.

The tax for 15, 25, and 30 UP strength: The tax for all three categories of alcohol has been kept at the old rate. Rs 1,860 for 15 UP, Rs 1,390 for 25 UP, and Rs 1,290 per liter remain unchanged. 40 UP strength (34.23) alcohol, previously Rs 650 per liter, has been increased to Rs 690 by the new bill. 50 UP strength (28.53) alcohol, previously Rs 450 per liter, has now been fixed at Rs 490.

For mixed ready-to-drink beverages with up to 5 percent alcohol, the rate has been increased from Rs 240 per liter to Rs 255 in the new rate.

The government appears to have set a target of revenue increase by specifically raising the tax on beer and medium-strength spirits (40 and 50 UP). The rates for high-value spirits have been kept stable.

For imported liquor, the provision that the same rate will apply if there is a variation of up to 1 percent in alcohol content has been continued.