Kathmandu- As government steps of homework to finalize budget for fiscal year 2018-19, Ministry of Health has proposed to increase the excise duty on tobacco products.
The Ministry officials informed that they have proposed to increase excise duty on cigarettes, packaged chewing tobacco gutkha among others. If Ministry of Finance gives a nod, up to 70 percent excise duty will be imposed on these products in the next fiscal year.
Now, government is levying 35 percent tax on these items. The main purpose of heavily increasing excise duty aims to discourage its consumption and protect the environment, Ministry officials said.
A study has shown that tobacco products worth Rs 1.70 billion in the first eight months of ongoing fiscal year. Every year, government reviews the excise duty on tobacco products.
