Banking News — In a bold move aimed at strengthening Nepal’s health insurance program, Health and Population Minister Pradip Paudel has proposed a significant increase in the prices of cigarettes and alcohol. The minister has recommended raising the price of cigarettes from Rs 10 to Rs 30 per stick, and alcohol from Rs 1,000 to Rs 3,000 per bottle.

The announcement was made on Monday during the 17th anniversary celebration and the inauguration of a blood bank at Nepal Korea Friendship Municipality Hospital in Madhyapur Thimi.

Minister Paudel emphasized that the additional revenue generated from the proposed tax hikes could be directed toward sustaining the country’s health insurance scheme. “If we do not implement such measures, the health insurance program may become unsustainable and risk being discontinued altogether,” he warned.

Paudel also revealed that the ministry is preparing to increase the health insurance coverage limit from the current Rs 100,000 to Rs 500,000 per family.

The event also saw the participation of Bagmati Provincial Assembly Member Suresh Shrestha, Madhyapur Thimi Mayor Surendra Shrestha, former mayor Madan Krishna Shrestha, Deputy Mayor Anjana Devi Madhikarmi, and other stakeholders, who discussed broader issues concerning Nepal’s health sector.

This proposal comes amid broader government discussions on reviving the Janakpur Cigarette Factory and exploring additional revenue sources to bolster public health infrastructure.