Tobacco imports on the rise

June 8, 2017 00:20 AM Ritesh Tripathi


BIRGUNJ, June 8: Import of tobacco has increased by nearly 49 percent in the current fiscal year compared to figures of Fiscal Year 2015/16.

Tobacco is a key raw material for tobacco products like cigarette, packaged chewing tobacco and gutkha.

According to Birgunj Customs Office, Nepal imported 5,919.47 tons of tobacco in the first 10 months of 2016/17, compared to 3955.77 tons in the same period of the last fiscal year.

“Tobacco imported by major manufacturers like Surya Nepal and other small companies enter the country from this customs point,” Sebantak Pokhrel, chief of Birgunj Customs Office, told Republica. 

Importers have to pay around 50 percent of the cost of tobacco as tax to the government.

From the tobacco imports worth Rs 2.19 billion in the first 10 months of the current fiscal year, the customs office mobilized Rs 1.44 billion from customs duty, excise duty and VAT.

In the same period last year, the office had taxes worth mobilized Rs 688.63 million from tobacco imports.

The government levies 15 percent customs tax on whole leaf tobacco and 30 percent on ground tobacco. Importers also have to pay excise duty as well as 13 percent VAT.


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