The government has increased customs duty on gold and silver to prevent smuggling of the precious metals.
A cabinet meeting, last week, decided to increase customs duty on gold and silver imports in line with the budget speech for the current fiscal year. “The decision officially came into effect from today,” according to Federation of Nepalese Gold and Silver Dealers Association (Fenegosida).
The cabinet meeting – on the recommendation of Finance Ministry – hiked customs duty on import of raw gold to Rs 7,500 per 10 grams for up to 50 grams and to Rs 8,500 per 10 grams for imports of above 50 grams and up to 100 grams, the association said, adding that according to the new law, individuals can bring up to 100 grams of raw gold while returning from abroad. “Earlier, the government was levying customs duty of Rs 6,200 per 10 grams for up to 50 grams and Rs 7,200 per 10 grams on additional 50 grams of the imported raw gold.”
Likewise, for gold jewellery, the government has raised customs duty to Rs 8,500 per 10 grams for up to 50 grams from Rs 7,200 and to Rs 10,000 per 10 grams for additional import of up to 100 grams from Rs 9,000.
Customs duty on silver has also been raised to Rs 75 per 10 grams from Rs 56 per 10 grams, the association informed, adding that the government – through the budget speech for current fiscal year 2019-20 – has increased customs duty on gold.
Similarly, the price of gold increased by Rs 1,100 per tola, in a single day today in the domestic market though the price is decreasing in the international market. According to the Fenegosida, the precious yellow metal has been traded for Rs 71,000 per tola today. Gold was traded at Rs 69,900 per tola on Saturday.
In the international market, gold was traded at $1,459 per troy ounce today, down from Friday's $1,462 per troy ounce.
Had the government not increased customs, the price of the precious yellow metal would have cost Rs 1500 less in a toal, based on the international price. The government increased the customs as the price of gold has been cheaper in the Nepali market compared to India. “As the two countries share open border, hike in customs duty was needed to prevent smuggling of gold to India," the Fenegosida added. “India has been levying 12 per cent customs duty on gold, whereas the customs duty on gold imports in Nepal has reached 13 per cent, with the hike.”
A cabinet meeting, last week, decided to increase customs duty on gold and silver imports in line with the budget speech for the current fiscal year. “The decision officially came into effect from today,” according to Federation of Nepalese Gold and Silver Dealers Association (Fenegosida).
The cabinet meeting – on the recommendation of Finance Ministry – hiked customs duty on import of raw gold to Rs 7,500 per 10 grams for up to 50 grams and to Rs 8,500 per 10 grams for imports of above 50 grams and up to 100 grams, the association said, adding that according to the new law, individuals can bring up to 100 grams of raw gold while returning from abroad. “Earlier, the government was levying customs duty of Rs 6,200 per 10 grams for up to 50 grams and Rs 7,200 per 10 grams on additional 50 grams of the imported raw gold.”
Likewise, for gold jewellery, the government has raised customs duty to Rs 8,500 per 10 grams for up to 50 grams from Rs 7,200 and to Rs 10,000 per 10 grams for additional import of up to 100 grams from Rs 9,000.
Customs duty on silver has also been raised to Rs 75 per 10 grams from Rs 56 per 10 grams, the association informed, adding that the government – through the budget speech for current fiscal year 2019-20 – has increased customs duty on gold.
Similarly, the price of gold increased by Rs 1,100 per tola, in a single day today in the domestic market though the price is decreasing in the international market. According to the Fenegosida, the precious yellow metal has been traded for Rs 71,000 per tola today. Gold was traded at Rs 69,900 per tola on Saturday.
In the international market, gold was traded at $1,459 per troy ounce today, down from Friday's $1,462 per troy ounce.
Had the government not increased customs, the price of the precious yellow metal would have cost Rs 1500 less in a toal, based on the international price. The government increased the customs as the price of gold has been cheaper in the Nepali market compared to India. “As the two countries share open border, hike in customs duty was needed to prevent smuggling of gold to India," the Fenegosida added. “India has been levying 12 per cent customs duty on gold, whereas the customs duty on gold imports in Nepal has reached 13 per cent, with the hike.”
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