Lawmakers urge to increase tax rate on tobacco products

Kathmandu: Lawmakers have stressed the need to hike the tax rate on tobacco products.

At an interaction programme organised in the capital city on Sunday, the lawmakers viewed that increasing the tax rate was a good measure to control and prevent the sale and distribution of tobacco products.

On the occasion, Chairperson of Committee on Education, Health and Technology of the House of Representatives (HoR) Dr Ojashwi Sherchan said that the tax rate on tobacco products should be hiked, adding that tobacco intake could be lowered through tax increment as per the standard suggested by the World Health Organisation (WHO).

The WHO has recommended that the tax rate on tobacco products could be imposed upto 75 percent, while the tax rate on tobacco products in Nepal is just 41 percent.

Likewise, MP Dr Tosima Karki viewed that the tax rate on tobacco products should be increased to up to 50 percent and the tax collected from tobacco products should be spent in the health care sector. She opined that the rise in tariffs should be aimed at reducing the consumption of tobacco products.

Similarly, MP Dr Chandrasingh Yadav said that the risk factors of non-communicable diseases could be lowered by increasing the tax rate of tobacco products.

Likewise, MPs Guru Baral, Bhim Kumar Budhamagar, Bharat Giri and others also viewed that tobacco consumption could be reduced only by increasing the tariffs.

Former Vice Chairman of the National Planning Commission Shivaraj Adhikari and tax expert Dr Rup Khadka argued that the tax rate on tobacco should be hiked this time.

RSS