Government revises excise duties, increases on alcohol, tobacco, and junk food

The government has revised various tax rates through the Finance Bill 2083. Finance Minister Dr. Swarnim Wagle announced that excise duties on 360 items have been abolished in the budget for the upcoming fiscal year 2083/84.

However, excise duties on items such as alcohol and tobacco products have increased. Similarly, junk food, paints, and juices have also seen a rise in excise duties. According to the Finance Bill, the excise duty on jaggery has been increased from Rs 138 to Rs 140 per quintal. Likewise, the duty on sugarcane molasses has been raised from Rs 110 to Rs 115 per quintal.

The excise duty on chewing gum, whether coated with sugar or not, cocoa powder, chocolate without added sugar, and other cocoa-mixed items has been reduced from Rs 15 to Rs 12. The duty on items like spaghetti, macaroni, and pasta has been increased from Rs 20 to Rs 35 per kilogram.

The excise duty on bread, cocoa bread, crisps, gingerbread, sweet biscuits, cakes, cookies, pastries, waffles, and wafers has been increased from Rs 15. The duty on snacks like Kurkure, Kurmure, Lays, and cheese balls, which was previously Rs 20 per kilogram, has been raised to Rs 75 per kilogram. The duty on potato chips, which was Rs 18 per kilogram, has been increased to Rs 30 per kilogram.

The excise duty on various fruit juices such as orange, pomegranate, jackfruit, grape, apple, tomato, and mango has been increased from Rs 13.50 to Rs 14 per liter. The duty on non-tobacco pan masala, which was previously Rs 875 per kilogram, has now been raised to Rs 1,150 per kilogram, as stated in the Finance Bill.

Similarly, the excise duty on non-tobacco flavored betel nuts has been increased from Rs 375 to Rs 500 per kilogram. The duty on non-alcoholic beer, which was Rs 45 per liter, has been doubled to Rs 90 per liter. The duty on energy drinks has been raised from Rs 52 to Rs 120 per liter.

The excise duty on soft drinks has been increased from Rs 25 to Rs 60 per liter. The duty on beer made from malt with up to 5% alcohol has been increased from Rs 240 to Rs 255 per liter. Similarly, the duty on wine with 12% to 17% alcohol content has been increased from Rs 460 to Rs 490 per liter.

For wine with more than 17% alcohol content, the excise duty has been increased from Rs 535 to Rs 570 per liter. The duty on chhyang, or country beer, has been increased from Rs 48 to Rs 50 per liter. The duty on champagne, sherry, mead, perry cider, and similar beverages has been reduced from Rs 516 to Rs 490 per liter. Meanwhile, the duty on herbal-infused liquor and cocktails with more than 17% alcohol content has been increased from Rs 516 to Rs 570 per liter.

Furthermore, the excise duty on cigars, cheroots, and small cigars containing tobacco has been increased from Rs 31 to Rs 35 per stick. The duty on non-filter cigarettes has been increased from Rs 778 to Rs 780 per thousand. Similarly, the duty on filter cigarettes up to 70 mm in length has been increased from Rs 1,792 to Rs 1,845 per thousand. Excise duties on tobacco products and cigarettes have increased.

Additionally, the excise duty on paint, enamel for painting, and thermoplastic paint for road markings has been increased from Rs 7 to Rs 15. The duty on materials used for floor coverings, whether in tile or roll form, has been increased from Rs 10 to Rs 15.