Finance Minister Paudel positive about lowering customs tax on gold and silver

Published On: August 6, 2024 08:40 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Aug 6: Deputy Prime Minister and Minister for Finance Bishnu Paudel has stated that the government is positive about lowering the customs tax on gold and silver.

In a meeting with the office-bearers of the Federation of Nepal Gold and Silver Dealers Associations (FENEGOSIDA), Nepal Gem and Jewellery Association (NEGJA), and Federation of Handicraft Associations of Nepal (FHAN), Minister Paudel assured that the government is positive about lowering the customs tax on gold and silver.

Admitting the need to immediately address the impact of the decrease in the customs rate of gold in India on Nepal, he committed to making a decision soon after consulting with the relevant authorities.

On the occasion, FENEGOSIDA President Arjun Rasaili demanded that the customs rate of gold and silver be reduced to six percent in line with the recently released budget in India. Since such rates are maintained at 20 percent in Nepal, he proposed reducing the customs rate to 8 percent for gold and 6 percent for silver to prevent trade imbalances.

He also pointed out the need for the banks to import gold only at certain times. However, under the existing system, the customs rate changes daily, causing problems in business. Therefore, he suggested that the customs rate be fixed every 15 days and reviewed periodically for customs purposes.

Rasaili recommended organizing the existing recommendation system to arrange for the import of 50 kg gold per day, with 30 kg allocated to businessmen through banks and 20 kg for productive industries.

He further demanded the establishment of a quota system for gold imports based on a daily quota for 365 days, so that market demand and supply can be balanced according to the season and off-season, with imports kept within the annual fixed quota ceiling.

The three federations submitted a letter to Minister Paudel, outlining issues that need immediate attention in the gold and silver sector.

The businessmen also called for the establishment of a one-door system involving the Ministry of Industry, Commerce and Supplies, the Ministry of Finance, and Nepal Rastra Bank for all activities related to gold and silver.