KATHMANDU, May 30: The government revised the customs duty on imported liquor, previously charging Rs 2,000 per liter on imported spirits. It also levied Rs 200 per liter on beer and Rs 300 per liter on wine.
Through the Finance Bill, the government amended the customs duty to 100 percent of the import value for prepared liquors such as whiskey, rum, brandy, gin, and vodka.
Industry insiders and importers report that large-scale imports of branded liquor still cost between 4-5 to as much as 14-15 US dollars per liter. Data from online shopping platforms confirms these prices for certain brands.
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For example, wholesalers buy VAT 69 whiskey at a factory price of around $4.85 per liter. Similarly, importers pay about $10 as the FOB (Free on Board) price for Red Label whiskey, while Absolut vodka carries a comparable FOB price. However, the final price varies depending on the delivery destination and country.
Liquor producers point out that taxing imported liquor as a percentage of its value makes cheaper foreign liquor even more affordable, which concerns domestic manufacturers.
Producers warn that increasing foreign liquor imports in Nepal will harm local industries. Gaurav Sharda, director of Sharda Group, accuses the government of failing to conduct adequate research before changing the customs duty on liquor.
He also warns that the new customs duty could double the prices of wine and beer. Furthermore, he argues that reducing the customs duty on spirits used as raw materials in liquor production to 30 percent was a mistake.
He explains that the revised duty structure lowers customs duty on mid-range imported liquors such as Red Label, VAT 69, and Absolut Vodka, while raising it on premium brands.
