KATHMANDU: Nepal has witnessed a sharp rise in beer consumption, leading to a significant increase in government revenue. In the past six months alone, the government has collected NPR 17.25 billion in excise duty from beer sales, reflecting a surge in domestic beer production.

According to the Office of the Auditor General, the consumption of locally produced beer has risen by 38.31% compared to the same period last year. This increase aligns with a broader rise in alcohol and tobacco production across Nepal.

Excise duty revenue from alcohol has jumped 26.64% year-on-year, reaching NPR 15.36 billion in the first half of the fiscal year. Meanwhile, tobacco-related revenue saw a modest increase from NPR 12.92 billion to NPR 13.79 billion.

Government officials attribute the rise in beer and liquor production to growing demand and an upward revision in tax rates on these products. Despite similar levels of tobacco production, the increased tax rates have contributed to higher revenue.

With Nepal’s alcoholic beverage industry expanding, analysts suggest that rising consumption trends could further boost government revenues in the coming months.