Alcohol imports decline as domestic production ramps upThe import of different varieties of alcohol from Sirsiya dry port has declined in the last fiscal year 2017-18. However, the import of wine and other raw materials for production purposes have increased.
The import of different varieties of alcohol from Sirsiya dry port has declined in the last fiscal year 2017-18. However, the import of wine and other raw materials for production purposes have increased.
According to Surya Sedai, chief of customs office, the increasing reliability of domestic alcohol and price hikes of international alcohol brands were the main reasons for decreasing imports of alcohol in the country. He added that because of these changes, customers’ preference have shifted from international alcohol brands to domestic brands.
According to statistics provided by the customs office at the dry port, 457,000 litres of ready-made alcohol, which amounted to Rs734.3 million, was imported in the last fiscal year, collecting a revenue amount of Rs1.24 billion. Similarly, 153,000 litres of beer worth Rs16.2 million, was imported in the last fiscal year, with revenue collection of Rs39.9 million. The trade point also saw 848,224 litres of wine worth Rs310 being imported which provided revenue of Rs540.8 million.
With domestic alcohol production surging, import of raw materials jumped nearly seven-fold. Raw materials worth Rs364.8 million for the production of 137,000 litres of alcohol were imported via the trade point and netted Rs243.5 million in customs revenue. In the previous fiscal year, raw material amounting to Rs20.1 million for the production of 20,300 litres of alcohol was imported, which provided revenue of Rs20.6 million.
Alcohol falls under the top four revenue contributors in the customs department. A container of whiskey collects revenue of around Rs15 million to Rs22.5 million, whereas a container of wine collects revenue of around Rs4 million to Rs5 million.
The government increased the customs price of alcohol in the previous fiscal year. The excise duty of beer per litre increased from Rs106 to Rs115, extra neutral alcohol increased from Rs50 to Rs58, wine per litre from Rs115 to Rs128, 15UP whiskey per litre from Rs912 to Rs1,003, and 25UP whiskey per litre from Rs680 to Rs748. The excise duty on other alcohol products has also increased.
Majority of the alcohol available in the Nepali market is imported from third-world countries to Nepal via the Kolkata port. Popular international brands are imported from Scotland, the US and England. The excise duty has been charged as per the UP level on whiskey.
Similarly, beer is imported specially from Spain and England, whereas whiskey is mainly imported from England, Germany, Australia, among other countries. Wine is imported from Australia and China.