• February 22, 2024

Momentum Building for Tobacco Tax Hike

 Momentum Building for Tobacco Tax Hike
Photo: Taco Tuinstra

Momentum is building for higher tobacco duties in Nepal , reports MyRublica.

During a discussion with health reporters on May 10, Health and Population Minister Mohan Bahadur Basnet said he is prepared to increase the tax on tobacco products and spend the money on health services.

While developed countries subject tobacco products to tax rates of more than 70 percent, Nepal is currently taxing at a low percentage, according to Basnet.

Basnet aims to invest the money earned from additional tobacco taxation in government hospitals. Nepal’s budget has struggled in the wake of an economic crisis caused by the Ukraine war and Covid-19.