Trades have started unethically charging 10 percent of the gold price fixed for the day as working charge. On top of it, they also charge six percent of the price as wastage charge. This means traders will have to pay 16 percent more than the actual price of gold while buying golden ornaments. [break]
The increase in working charge has come as a big blow to consumers as they are bound to pay a hefty sum while either manufacturing new gold ornaments or buying a ready made one. Almost all gold traders in New Road area have been fleecing customers by unilaterally increasing working charge.
Gold traders, however, said they were left with no alternatives but to raise gold price because of increasing labor charge. “The labor charge of artists and designers is very high. On top of this, we also have to bear various other additional charges. I think what we are charging is fair enough,” a jeweler based in New Road told Republica.
As per existing practice, jewelers have to impose working charge as per the design of the jewelry and the working charge generally ranges between Rs 500 to Rs 1,000.
“The 10 percent working charge that some jewelers have started lately can´t be justified. They are cheating consumers,” Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association (Negosida) told Republica. He further added that traders were trying to compensate their publicity and showroom expenses by increasing working charge.
“The increasing trend of investing more on showroom is one of the reason that prompted jewelers to increase working charge,” Shakya informed.
“If high labor costs were the reason behind the rise in working charge, other gold shops should have also hiked working charge. Why only the shops based in and around New Road are raising working charge?” Shakya wondered. He also said working charge should be estimated as per the design of the jewelries.
Shakya further informed that his jewelry shop - Tejmin Jewelry in New Road - has been charging only up to Rs 900 as working charge.
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