Tobacco industry thwarts tax rises, undermines control measures in Nepal: study report

KATHMANDU: A study by the Health Rights and Tobacco Control Network Nepal (HRTC, Nepal) says tobacco companies in Nepal are marketing under various names and using influence, pressure and interference to challenge policies and laws, preventing increases in tobacco taxation and undermining tobacco control measures.

The findings are published in the Tobacco Industry Interference Report‑2025, which was publicly launched in Kathmandu on Sunday at an event organised by HRTC, Nepal, in association with the National Health Education, Information and Communication Centre (NHEICC).

The global study of 100 countries on industry interference in tobacco control ranks Nepal 14th, with a score of 44 (lower scores indicate less interference). The Dominican Republic, Switzerland and the United States record the highest levels of interference, while Brunei, Palau and Botswana show minimal interference. Within South Asia, the Maldives ranks 8th (43), Sri Lanka 17th (45), Pakistan 33rd (54), India 48th (59) and Bangladesh 69th (66).

The network evaluated industry influence on governments, policymakers and public institutions from April 2023 to March 2025. The 2025 report warns that industry strategies are becoming more sophisticated and aggressive, seeking to access government machinery to stop tax increases, weaken health warning labelling, keep new products outside regulation and continue indirect promotion targeted at young people.

The report lists common tactics as unnecessary meetings with policymakers, participation in government and social programmes under the guise of corporate social responsibility, delaying policies through legal challenges, and building a positive image by emphasising economic contributions. Comparative data suggest risks related to the tobacco industry in Nepal have increased slightly compared with previous indices, indicating more instances of government interaction with the industry, lack of transparency or weak policy practices.

Shant Lal Mulmi, coordinator of HRTC‑Nepal, said, “Tobacco industries continue to promote their products under the name of CSR,” despite legal provisions prohibiting any form of tobacco promotion or advertisement.

Purna Bhakta Duwal, secretary of the network and one of the researchers, said the study shows global tobacco industry interference in public health policies “has not yet weakened.” He added that the study categorises Nepal as a medium‑level risk country, meaning it is not entirely safe from interference but not at extreme risk either.

The study notes that although Nepal has the Tobacco Product Control and Regulation Act, full implementation has yet to be institutionalised. It calls for clear standards for disclosing contact with the industry in government agencies, strict conflict‑of‑interest regulations and stronger monitoring mechanisms.

Public health experts warn that interference is not limited to the Ministry of Health and Population. The industry also seeks influence through the finance, industry, commerce and labour sectors, using arguments about tax policy, trade facilitation, employment and revenue contribution to undermine health policies.

The report stresses the decisive role of civil society, health activists and the media in exposing industry strategies. It recommends that all government contacts with the tobacco industry be mandatorily disclosed and recorded, that a strict code of conduct for public officials be implemented, and that tobacco companies be barred from conducting CSR activities under their brand names.

The research links the absence of recent tax increases on tobacco in Nepal to industry influence at policy level, saying companies create the illusion they are harmless by providing financial aid to schools and purchasing ambulances, actions that contravene the Tobacco Control Act and the Public Health Act.

Concerns were also raised about the growing use of electronic cigarettes and hookahs among school and college students and Nepal’s role as a transit point for the vape trade. Advocate Jyoti Baniya said that “although there is a ban on imports, there is no effective halt on use and distribution,” and called for legal amendments.

Coordinator Mulmi added that tobacco industries still influence policymakers and stakeholders in violation of Nepali law, providing financial support to candidates during elections and aiding organisations under CSR with the expectation of favourable policies. He warned that this creates a situation where parliament struggles to draft opposing laws.

Dr Prakash Budhathoki, spokesperson for the Ministry of Health and Population, said the ministry had been unable to convince stakeholders to increase taxes. “Although the health ministry took proposals to the Ministry of Finance, they could not achieve the desired tax hike,” he said, adding that in the pursuit of revenue, the country loses large sums to health treatment costs borne by both the government and patients out of pocket.

Dr Gyampo Dorji of the World Health Organization said local tobacco cultivation has negative effects and urged reduction through awareness, having observed tobacco farming in many parts of Nepal.

The report cites recent data showing that about 39,200 people die annually in Nepal due to tobacco consumption, and that roughly Rs 45 billion is spent on treatment.

At the report launch, Sudurpashchim Province coordinator Krishna Singh Deuba, Bagmati Province coordinator Ratna Chawal and Koshi Province coordinator Madan Katuwal shared their views. Participants at the event urged united action to stop industry interference, warning that tobacco harms public health and damages the country’s social and economic well‑being.