c
Despite the government decision to raise excise duty on liquor and cigarette among others, traders say it will not make any difference in sales as the consumption has been growing every year despite hike in prices.
The fresh hike in excise duty will raise liquor prices in the range of Rs 75 to Rs 80 per liter. Amit Agrawal of Greenline Centre -- a liquor importer - said the price of white sprits will increase by Rs 75 to Rs 80 per liter, while price of wine will go up by Rs 25 per 750 ml.
Traders expect the hike in excise duty on liquor imports will boost the sale of locally brewed liquors.
Arjun Bhandari, managing director of Mark Davidson wines, said the hike in excise duty will raise import prices by just Rs 16 per 750 ml. “This won´t impact much on sales. It is a very nominal hike as compared to the inflation rate. I don´t think it will affect the consumption of wines and liquors,” commented Bhandari.
Likewise, the government has the increased excise duty on wines with various alcohol contents by Rs 22 to Rs 25 per liter. Similarly, the excise duty on whisky with 25 UP has been raised from Rs 385 per liter to Rs 439 per liter and from Rs 513 per LP liter to Rs 587 per LP liter.
The government has also increased the excise duty on fruit juices and drinks without alcohol content by Rs 1.5 per liter and Rs 2 per liter respectively.
The excise duty on cigarette has been raised from Rs 444 per 500 sticks to Rs 533 per 500 sticks. This will raise cigarette price by about 7.5 percent. Similarly, the excise duty on beer has been raised to Rs 80 per liter from Rs 72 per liter.
The government has also raised customs duty on clinker imports. The custom duty on clinker has been raised in the range of Rs 2,200 to Rs 3,550 from Rs 1,800 to Rs 3,150 per ton. The hike in customs duty means, cement price will increase by a minimum of Rs 50 per sack (50 kg).
Dhurba Thapa, vice-president of Nepal Cement Manufacturers´ Association, said the decision to hike customs duty on clinkers will invite unfavorable situation for cement industries.
“At a time when the price of cement is decreasing in India, the decision is likely to make negative impact in the market and promote black marketeering,” Thapa told Republica.
Source: myrepublica.com
