Gold Prices Plummet In Nepal As Government Slashes Customs Duty By 50%

Kathmandu: Gold prices in Nepal saw a sharp decline of Rs 15,900 per tola (11.664 grams) on Monday following the government's decision to cut the customs duty on gold imports by half. As per the Federation of Nepal Gold and Silver Dealers Association, hallmark gold is now priced at Rs 151,300 per tola, a significant drop from Rs 167,200 recorded on Sunday.

Nepal Govt. Reduces Custom Duty On Gold from 20% To 10%

The Nepal government reduced the customs duty on gold imports to 10 percent from the previous 20 percent, a decision made during a Cabinet meeting last Thursday. This move aims to address the growing issue of gold smuggling between Nepal and India, attributed to disparities in import duties.

Earlier this fiscal year, Nepal had increased the customs duty on gold by 5 percent, raising it to 20 percent, while India lowered its customs duty on gold and silver from 15 percent to 6 percent. This difference had made gold cheaper in India and led to increased smuggling across the open border. The Federation has proposed that the customs duty on gold be set at 8% to maintain market stability and prevent illegal trade. 

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