KATHMANDU: In a significant fiscal policy shift, the government has decided to increase customs duties on alcohol, beer, cigarettes, and other tobacco products.
Announcing the annual budget for the fiscal year 2025/26, Finance Minister Bishnu Prasad Paudel stated that necessary amendments will be made to the Value Added Tax (VAT) and Excise Duty laws to enforce the new taxation measures.
Even before the budget announcement, markets were already witnessing shortages of alcohol, beer, cigarettes, and tobacco products. With the revised tax policy now confirmed, prices of these goods are expected to rise further.