KATHMANDU: In an attempt to promote domestic production, the government has hiked import duty on over 200 imported goods.

The government hiked the customs duty on the products through the Economic Bill for the coming fiscal year.

The Bill has increased import duty ranging from five to 45 percent on chicken meat, drinking water, shoes and slippers, biscuits and bread, black pepper, ice cream and liquors among other products.

The import duty on energy drinks has been increased to 75 percent from the existing 45 percent and duty on shoes and slippers has now reached 40 percent.

Likewise, the government has increased customs duty on sugar and on dry fruits by ten percent.

Similarly, import duty on juice has been hiked by 30 percent, tea and coffee and milk powder by ten percent and toys by five percent.

Minister for Finance Yubaraj Khatiwada says that with the increment on customs duty, it will be easier for domestic products to compete with imported goods.

Industrialists say the decision will help to reduce the trade deficit and will eventually contribute to increased gross domestic production.