Government Slashes Import Duties on Foreign Liquor

The government has introduced major changes in the customs duties on imported liquor. Previously, most alcoholic imports were taxed at fixed rates — like Rs 200 per liter for beer and Rs 300 for wine. Now, the new tax system shifts to percentage-based duties.

The change means ready-made liquors like whisky, brandy, rum, gin, and vodka will now be taxed at 100% of their import value, while raw spirit ingredients will face just a 30% duty. This has sparked serious concerns among Nepali liquor producers.

According to industry insiders, brands like VAT 69, Red Label, and Absolut Vodka can cost as little as $4.85 to $10 per liter wholesale. With percentage-based tax, cheaper imports may enter the Nepali market at very low prices, challenging local products.

Producers warn this could seriously harm Nepal’s alcohol industry, which already produces 95% of its spirit locally. They fear cheaper spirit imports, especially from India, may flood the market.

Critics say the new customs structure favors mid-range imported brands while possibly increasing prices for beer and wine. They also argue the government failed to conduct proper research before making these changes.

New Import Duty Rates on Foreign Liquor