Prices of booze, cement set to rise
KATHMANDU, JUL 18 -
Prices of a number of luxury goods and some not-so-luxurious products are set to rise after the government jacked up the excise duty in the national budget released Friday. The government has raised taxes on liquors, tobacco products, readymade juices and non-alcoholic beverages. Likewise, the price of clinker, which is used as a raw material in the manufacture of cement, is also set to increase with the change in the duty structure.
“The hike in the excise duty will certainly hit the market,” said Bal Krishna Thapaliya, manager of Greenline Centre, one of the noted names in the domestic alcohol market. “Moreover, as the market currently is at a low ebb because of reasons like a liquidity crunch and this being the off-season, the impact will be very visible.”
Thapaliya added that consumption of alcoholic products at marriage parties and other similar occasions will drop significantly. “Many people of late have started serving alcoholic products during parties and special occasions. It is certain that a large number of people will stay away from then after the prices get upwardly revised,” said Thapaliya.
“Wines are popular among teenagers and students. They have a significant share in the wine consumers list,” said Thapaliya, adding that a minimal hike of Rs 30 to Rs 40 per bottle in the retail price would divert them towards other drinks. He said that prices may go up by Rs 150 per bottle of imported whisky, Rs 300 to Rs 500 per case of whisky manufactured in Nepal and around Rs 120 per case of beer.
The increase in the excise duty on alcohol has pushed up prices to the range of Rs 411 to Rs 587 from Rs 385 to Rs 513 in the previous budget. The excise duty on beer has also been changed from Rs 72 per litre to Rs 80 per litre. Likewise, the government has increased the excise duty on packaged fruit juice by Rs 1.5 per litre and on non-alcoholic drinks by Rs 2 per litre.
According to Thapaliya, Greenline Centre deals in 2,000 varieties of alcoholic products including whiskey, wine, beer, rum, vodka, gin and brandy, among others. “More than 50 percent of the people go for brands like Signature, Royal Stag, No 1 McDowell and Antiquity that are manufactured in Nepal. Only 30 percent of the people go for imported ones,” Thapaliya said.
Likewise, the price of cement will also rise by around Rs 25 to Rs 30 per 50 kg. According to Vishnu Neupane, general secretary of the Nepal Cement Manufacturers Association, the increase in the excise duty by the government will have a severe impact on the market.
“The price of cement in the market is already high, and with a further hike in the duty, it will become costlier which will have an adverse effect on the general people to big developers,” said Neupane. He added that the duty on cement was very high compared to other nations.
“Probably this is the highest amount of duty imposed on cement by any country. The government has further increased the duty from the existing 75 percent to 90 percent compared to the price in India,” said Neupane, adding that this would boost illegal imports of cement in the border areas.
He said that the price hike would hit cement sales which havve already been affected by a slowdown in the housing and apartment sector.
Likewise, the government has increased the excise duty on cigarettes to Rs 533 per 500 sticks, up from Rs 444.
Source: Kantipur
Prices of a number of luxury goods and some not-so-luxurious products are set to rise after the government jacked up the excise duty in the national budget released Friday. The government has raised taxes on liquors, tobacco products, readymade juices and non-alcoholic beverages. Likewise, the price of clinker, which is used as a raw material in the manufacture of cement, is also set to increase with the change in the duty structure.
“The hike in the excise duty will certainly hit the market,” said Bal Krishna Thapaliya, manager of Greenline Centre, one of the noted names in the domestic alcohol market. “Moreover, as the market currently is at a low ebb because of reasons like a liquidity crunch and this being the off-season, the impact will be very visible.”
Thapaliya added that consumption of alcoholic products at marriage parties and other similar occasions will drop significantly. “Many people of late have started serving alcoholic products during parties and special occasions. It is certain that a large number of people will stay away from then after the prices get upwardly revised,” said Thapaliya.
“Wines are popular among teenagers and students. They have a significant share in the wine consumers list,” said Thapaliya, adding that a minimal hike of Rs 30 to Rs 40 per bottle in the retail price would divert them towards other drinks. He said that prices may go up by Rs 150 per bottle of imported whisky, Rs 300 to Rs 500 per case of whisky manufactured in Nepal and around Rs 120 per case of beer.
The increase in the excise duty on alcohol has pushed up prices to the range of Rs 411 to Rs 587 from Rs 385 to Rs 513 in the previous budget. The excise duty on beer has also been changed from Rs 72 per litre to Rs 80 per litre. Likewise, the government has increased the excise duty on packaged fruit juice by Rs 1.5 per litre and on non-alcoholic drinks by Rs 2 per litre.
According to Thapaliya, Greenline Centre deals in 2,000 varieties of alcoholic products including whiskey, wine, beer, rum, vodka, gin and brandy, among others. “More than 50 percent of the people go for brands like Signature, Royal Stag, No 1 McDowell and Antiquity that are manufactured in Nepal. Only 30 percent of the people go for imported ones,” Thapaliya said.
Likewise, the price of cement will also rise by around Rs 25 to Rs 30 per 50 kg. According to Vishnu Neupane, general secretary of the Nepal Cement Manufacturers Association, the increase in the excise duty by the government will have a severe impact on the market.
“The price of cement in the market is already high, and with a further hike in the duty, it will become costlier which will have an adverse effect on the general people to big developers,” said Neupane. He added that the duty on cement was very high compared to other nations.
“Probably this is the highest amount of duty imposed on cement by any country. The government has further increased the duty from the existing 75 percent to 90 percent compared to the price in India,” said Neupane, adding that this would boost illegal imports of cement in the border areas.
He said that the price hike would hit cement sales which havve already been affected by a slowdown in the housing and apartment sector.
Likewise, the government has increased the excise duty on cigarettes to Rs 533 per 500 sticks, up from Rs 444.
Source: Kantipur
