The government has revised customs and excise duty on more than half a dozen goods – including gold, silver, cosmetic products, cleaning materials made of iron and steel, and coffee related products, hatching eggs, acrylic emulsion – after the end of first quarter of the current fiscal year 2019-20 to promote the domestic products and discourage the imports.
Though, the government argued that customs and excise duty was revised as per the need mentioned in Sub-section (1) of Section 18, Financial Act, 2019, private sector has expressed dissatisfaction over the revision of customs and excise duty within three months of the implementation of Financial Act 2019. “It will affect stability of trade,” reads a press note issued by Nepal Chamber of Commerce (NCC) today. The chamber reminded government that industries and trading firms do businesses on the basis of their commercial plan prepared according to the Financial Act made public at the beginning of the fiscal year. “But the change in three months will create policy instability making it difficult for the businesses to operate,” it reads.
The cabinet meeting – on November 4 – has decided to revise the customs tariff on gold, silver, wine and coffee related products. The government has increased customs duty on gold imported for commercial purpose by Rs 1,500 per 10 grams on top. Likewise, the government – through the budget speech for the fiscal year 2019-20 – had increased customs duty on gold to Rs 5,000 per 10 grams. With the fresh revision, customs duty on the precious yellow metal has reached Rs 6,500 per 10 grams.
Likewise, tariff on silver has also been increased to Rs 75 per 10 grams, up from Rs 56 per 10 grams.
“The migrant workers bringing in up to 50 grams of gold are now required to pay Rs 7,500 per 10 grams, which was Rs 6,200 per 10 grams before the revision,” according to the notice published in the National Gazette. “If such workers bring 50 grams or more gold, they will have to pay Rs 8,500 per 10 grams as customs duty.” Such tariff was Rs 7,200 per 10 grams before.
The Gazette reads that customs duty of Rs 8,500 per 10 grams will be levied on gold ornaments of up to 50 grams. Earlier, customs tariff on such imports was Rs 7,200 per 10 grams. Likewise, customs duty on import of gold ornaments above 50 grams has been set at Rs 10,000 per 10 grams from Rs 9,000 per 10 grams, the Gazette reads.
Likewise, the government has also increased excise duty on cosmetic products to 10 per cent from 5 per cent. It has also decided to impose excise duty of 5 per cent and 10 per cent on cleaning materials made of iron and steel, and coffee related products, according to National Gazette.
The government has, however, relaxed customs tariff on goods like hatching eggs, acrylic emulsion and excise duty on wine produced in Nepal to promote the domestic products. The government has reduced customs duty on hatching eggs by half. Similarly, customs duty on import of acrylic emulsion – raw material for paints – has been reduced to 20 per cent from 30 per cent to promote the domestic production. The government has also lowered excise duty on wines – wines having up 12 per cent alcohol – made using locally produced fruits by 30 per cent.
Though, the government argued that customs and excise duty was revised as per the need mentioned in Sub-section (1) of Section 18, Financial Act, 2019, private sector has expressed dissatisfaction over the revision of customs and excise duty within three months of the implementation of Financial Act 2019. “It will affect stability of trade,” reads a press note issued by Nepal Chamber of Commerce (NCC) today. The chamber reminded government that industries and trading firms do businesses on the basis of their commercial plan prepared according to the Financial Act made public at the beginning of the fiscal year. “But the change in three months will create policy instability making it difficult for the businesses to operate,” it reads.
The cabinet meeting – on November 4 – has decided to revise the customs tariff on gold, silver, wine and coffee related products. The government has increased customs duty on gold imported for commercial purpose by Rs 1,500 per 10 grams on top. Likewise, the government – through the budget speech for the fiscal year 2019-20 – had increased customs duty on gold to Rs 5,000 per 10 grams. With the fresh revision, customs duty on the precious yellow metal has reached Rs 6,500 per 10 grams.
Likewise, tariff on silver has also been increased to Rs 75 per 10 grams, up from Rs 56 per 10 grams.
“The migrant workers bringing in up to 50 grams of gold are now required to pay Rs 7,500 per 10 grams, which was Rs 6,200 per 10 grams before the revision,” according to the notice published in the National Gazette. “If such workers bring 50 grams or more gold, they will have to pay Rs 8,500 per 10 grams as customs duty.” Such tariff was Rs 7,200 per 10 grams before.
The Gazette reads that customs duty of Rs 8,500 per 10 grams will be levied on gold ornaments of up to 50 grams. Earlier, customs tariff on such imports was Rs 7,200 per 10 grams. Likewise, customs duty on import of gold ornaments above 50 grams has been set at Rs 10,000 per 10 grams from Rs 9,000 per 10 grams, the Gazette reads.
Likewise, the government has also increased excise duty on cosmetic products to 10 per cent from 5 per cent. It has also decided to impose excise duty of 5 per cent and 10 per cent on cleaning materials made of iron and steel, and coffee related products, according to National Gazette.
The government has, however, relaxed customs tariff on goods like hatching eggs, acrylic emulsion and excise duty on wine produced in Nepal to promote the domestic products. The government has reduced customs duty on hatching eggs by half. Similarly, customs duty on import of acrylic emulsion – raw material for paints – has been reduced to 20 per cent from 30 per cent to promote the domestic production. The government has also lowered excise duty on wines – wines having up 12 per cent alcohol – made using locally produced fruits by 30 per cent.
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