Prices of a number of luxury goods and some not-so-luxurious products are set to rise after the government jacked up the excise duty in the national budget released Friday. The government has raised taxes on liquors, tobacco products, readymade juices and non-alcoholic beverages. Likewise, the price of clinker, which is used as a raw material in the manufacture of cement, is also set to increase with the change in the duty structure.

The price of cement will also rise by around Rs 25 to Rs 30 per 50 kg. According to Vishnu Neupane, general secretary of the Nepal Cement Manufacturers Association, the increase in the excise duty by the government will have a severe impact on the market.

“The price of cement in the market is already high, and with a further hike in the duty, it will become costlier which will have an adverse effect on the general people to big developers,” said Neupane. He added that the duty on cement was very high compared to other nations.

“Probably this is the highest amount of duty imposed on cement by any country. The government has further increased the duty from the existing 75 percent to 90 percent compared to the price in India,” said Neupane, adding that this would boost illegal imports of cement in the border areas.

He said that the price hike would hit cement sales which have already been affected by a slowdown in the housing and apartment sector.

source: The Kathmandu Post