The customs duty on gold earlier was Rs 3,600 per 10 grams.
According to Surya Parsad Acharya, director general of Department of Customs (DoC), a meeting of the council of ministers, on Wednesday decided to increase the custom duty on gold to Rs 5,200 per 10 gram. [break]
“A series of talks had been going on between gold dealers, Nepal Rastra Bank (NRB) and the government to increase the customs duty on gold in Nepal as soon as its duty was increased in India on the third week of August. Now, we have finally hiked the duty,” Acharya said.
India collects customs duty of Rs 4,480 per 10 grams of gold at present.
Nepali gold dealers and entrepreneurs had been asking the government to for the customs duty hike saying they feared that the increased rate in India would encourage black marketeering of gold in Nepal.
“The hike in customs duty of gold by the government will now discourage the black marketeering of gold from Nepal to India,” Ramesh Maharja, the president of Nepal Gem and Jewelry Association (NGJA), said. “We were expecting them to raise it to at least Rs 4,500. The government made it Rs 5,200. This shows a positive growth of gold market in Nepal.
Gold prices slide on Thursday by Rs 700 per tola (11.664 grams). With the decrease, the yellow metal was traded at Rs 56,803 per tola on Thursday. On Wednesday, the yellow metal was traded at Rs 57,503 per tola. According to gold dealers, the price of gold has decreased with its decreasing rate in the international bullion market. Meanwhile, the price of silver fell by Rs 11 per tola to Rs 979 on Thursday.
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