Leaders of Nepal’s tobacco industry have strongly opposed the government’s new directive requiring 100% health warning coverage on tobacco products, calling it detrimental to domestic businesses and a potential driver of illegal trade.  

The directive, recently issued by the Ministry of Health and Population, mandates that the entire surface of tobacco packaging display graphic and text warnings about the harmful effects of smoking and chewing tobacco. It replaces the previous 2014 directive, which was only enforced last fiscal year, and is set to take effect from mid-August 2025.  

Stakeholders have questioned the necessity of the new regulation, particularly when the existing rule requiring 90% warning coverage has yet to be fully implemented. They argue that the tobacco industry, which contributes over Rs 50 billion annually in revenue and employs hundreds of thousands, will face severe disruptions due to the directive.  

In a statement, the Nepal Beverage and Cigarette Industries Association expressed concerns that decades of investment in brand development and trademarks would be erased under the new regulation. “This will negatively impact domestic industries that have operated in Nepal for decades,” the statement reads, further warning that the directive could fuel the already rampant illegal trade of tobacco products.  

“The proposed directive, by requiring health warnings to cover 100% of the packaging, would leave no space for legally mandated product information,” said Ravi KC, Vice-President, Corporate, Surya Nepal, a leading cigarette manufacturer. “Either the government should declare tobacco products illegal and shut down manufacturing, or it should allow reasonable space for companies to display necessary product details for consumer awareness.”  

The association also claims that the directive could create compliance challenges for regulations related to excise duty, as tax stickers must be affixed to cigarette packs in a specified manner.  

Industry leaders argue that continuous policy instability and overly restrictive regulations have harmed the sector. They claim that imported products such as vapes, e-cigarettes, and nicotine pouches—equally harmful but not subject to similar packaging rules—will gain an unfair advantage over domestic products. Some industry insiders attribute the sudden policy shift to pressure from certain NGOs.  

Amid Nepal’s fragile economic climate, industry representatives urge the government to focus on policies that support industrial confidence rather than impose stringent regulations. They warn that such measures could stifle domestic industries and discourage foreign investment.  

Additionally, industry leaders claim the directive was issued without adequate consultation with key stakeholders, including tobacco producers, farmers, trade unions, and relevant government bodies such as the Ministry of Industry.  

However, Vital Strategies, a New York-based nonprofit focused on public health policy, has praised Nepal’s decision. If fully implemented, Nepal will become the first country in the world to mandate 100% health warning coverage on cigarette packs.  

“Globally, these warnings are proven to encourage quitting, promote quit attempts, and deter youth from smoking,” the organization stated, citing data that tobacco use kills more than 75 Nepalis daily.  

Dr. Tara Singh Bam, Director of Vital Strategies’ Asia Pacific Office, commended the government’s move. “By progressively enlarging the warnings, adopting 100% pictorial health warnings, and using multiple images to prevent consumer fatigue, Nepal has ensured this policy retains its impact,” he said.

This news has been updated.