Nepal: The worrying impact of tobacco on health and the economy

A report by the Swiss Association for the Prevention of Tobacco Use reports that high levels of consumption persist in Nepal. The document stresses the need to strengthen national tobacco control policies, increase taxation of tobacco products, ensure the effectiveness of measures and protect governments from the influence of the tobacco industry.

The Swiss Association for the Prevention of Tobacco Use has dedicated a special report to the situation and challenges related to the fight against smoking in Nepal. Despite the implementation of measures to combat smoking, the prevalence remains particularly high in the country. This is due in particular to taxation levels that are still too low, as well as to the strong influence of the tobacco industry in public decision-making and debate..

The major impact of tobacco in Nepal

With nearly one in five deaths attributable to tobacco (19.4%), smoking is the leading cause of death in Nepal. Beyond the human and health cost, the tobacco industry is responsible for a significant economic cost, estimated at around $300 million, or 1.04% of Nepal's GDP. For good reason, the Swiss Association for the Prevention of Smoking points out that the prevalence of smoking remains high, rising from 30.8% to 28.9% between 2012-13 and 2019. For its part, the Nepalese Institute of Research for Development estimates this prevalence of smoking at 31.7%.

Progress despite opposition from the tobacco industry

In 2006, the country ratified the World Organization Framework Convention on Tobacco Control (FCTC), preceding the implementation of several public health measures, such as the Tobacco Products Control and Regulation Act of 2011, with the obligation to affix health warnings covering more than 75% of the surface of packets, or the ban on advertising for tobacco products.

As the Swiss Association for Tobacco Prevention points out, Nepal tightened regulations on health warnings in 2015, requiring them to cover 90% of the surface of packs. However, this decision sparked strong opposition from the tobacco industry, forcing public health officials to file a counterclaim. Eight years later, the Supreme Court ruled in favor of public health, requiring manufacturers to print graphic warnings covering 90% of the surface of packs.

Tobacco taxation in Nepal still below international recommendations

After several years of advocacy efforts by public health stakeholders, the government has introduced significant tax increases on tobacco products. However, the tobacco tax rate, currently estimated at around 39% of the price of a packet, remains well below regional and international recommendations. Indeed, the World Health Organization recommends that governments tax tobacco at least 75% of their retail price.

As in many countries, the tobacco industry is seeking to dissuade governments from raising taxes on tobacco products, citing the risk of fueling illicit trade. While theThe Nepalese Development Research Institute estimates the share of illicit trade at 0.33% of national consumption, this argument, however, resonates with the Nepalese government, which is still too reluctant to mobilize the tax tool. However, the effectiveness of tax increases in reducing consumption and tobacco prevalence is the subject of a scientific consensus, regularly recalled by the WHO.

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National Committee Against Smoking |