LIAN suggests govt lift ban on import of int’l alcoholic beverages

KATHMANDU: Liquor Importers Association of Nepal (LIAN) has urged the government to lift the ban imposed on the import of international alcoholic beverages. The government has extended ban on the import of vehicles, alcohol, tobacco, and other luxury items from July 17 for another 45 days. In a press meet organised by the association in Lalitpur today, stakeholders said the government's decision to extend the ban on these international brand beverages will have adverse effect on the economy. It was highlighted that the total foreign currency reserves used by imported alcoholic beverages were only $12 million equivalent to about Rs 1.5 billion annually and this accounted for about 0.10% of the total foreign currency reserve outflow annually. The government revenue generated by imported alcoholic beverages was about Rs 3.3 billion making it more than twice the currency outflow. The association members said they have already witnessed some counterfeit international brand liquor available in the market which will make a huge impact on public health in society. It has come to light that large quantities of popular brands are being smuggled across the border from India via UP and West Bengal due to a huge gap in maximum retail price (MRP) in Nepal and these Indian states adjoining the border due to higher duties and excise in Nepal. They informed that hotels, restaurants and bars have incurred losses due to shortage of international brand alcoholic beverages, and it could endanger their sustainability. With increased cost pressures, hotels, restaurants and bars will be forced to lay off employees resulting in unemployment, added the association members. On average, about $15 per litre is the currency outflow but when this is sold at hotels and restaurants the revenue generated is $1,220 per litre which is eight times the currency and this entire value addition of $105 per litre happens within the boundaries of Nepal, according to LIAN. A large number of Indian tourists coming to Nepal consume these imported alcoholic beverages which are contributing to generating foreign currencies. READ ALSO:

• Govt continues ban on import of 10 types of goods
• CNI President Agarwal urges government to lift ban on imports
• Bankers’ association not to issue LC for import of essentials
• Nepal records Rs 904.18bn remittance inflows in 11 months of current FY
• Foreign currency reserves may run out in 7 months: NRB
• Bankers’ association not to issue LC for import of essentials
• Import of betel nut as per industry need: Minister Badu
• Overall economy has not gone into tailspin yet: NRB