Liquor factories, stores shut indefinitely

Liquor entrepreneurs have announced to halt production and distribution of liquor products indefinitely stating Tuesday, demanding that the government rollback the decision to increase excise duty on liquor products. Officials of Federation of Liquors´ Association of Nepal (FLAN) said all liquor manufacturers will take to the streets as part of their protest against excise duty hike on liquor products. Through the budget for the current fiscal year, the government increased liquor license renewal fee for hotels to Rs 3,500 from Rs 500 and liquor retailers to Rs 7,000 from Rs 1,000. Similarly, it raised license renewal fee for liquor wholesalers to Rs 30,000 from Rs 20,000. According to existing provision, hotels, liquor retailers and liquor wholesalers need to renew their license every year. Liquor entrepreneurs have also demanded that the government withdraw its decision to revoke 25 percent excise duty rebate that liquor stores outside the Kathmandu Valley were getting. “We are having talks with the concerned government agency on the issue. However, the government doesn´t seem in a mood to rollback the decision to hike excise duty,” Shyam Krishna Shrestha, general secretary of FLAN, said. “Renewal fee has been raised by around 66 percent, which is ridiculous.” FLAN officials said they won´t withdraw the protest until their demands are addressed. “We will announce series of protest programs if the government didn´t take our demands seriously.” Meanwhile, liquor entrepreneurs of Biratnagar have announced to shut down all liquor stores as part of their protest against the government. Organizing a press meet, officials of Liquor Entrepreneurs´ Association (LIA) Morang accused the government of overlooking their demands. Saying that excise duty should be determined as per the capacity of the industry, Rajan Pokhrel, president of LIA Morang, said they were not in a position to pay the newly hiked excise duty.