During the last fiscal year, the Internal Revenue Department (IRD) of Nepal reported that the government accrued a total revenue of Rs. 84.75 Billion from the sales of alcohol and cigarettes. This revenue distribution comprises Rs. 26.22 Billion from cigarettes, Rs. 25.92 Billion from alcohol, and Rs. 32.61 Billion from beer.
The source of this revenue lies in the imposition of excise duty on cigarettes and alcohol at customs points. In the preceding year, the revenue figures for cigarettes, alcohol, and beer were Rs. 24.56 Billion, Rs. 30.41 Billion, and Rs. 31 Billion, respectively.
The excise duty on alcohol is determined by its alcohol content strength, ranging from Rs. 1,250 to Rs. 2,120 per liter. As for unfiltered cigarettes, the excise duty is set at Rs. 730, whereas for filtered cigarettes, it varies between Rs. 1690 and Rs. 4080.
