KATHMANDU (Commodity Online) : Himalayan nation Nepal has decided to increase customs duty on gold by Rs 340 per 10 gram from Rs 130 per gram.
In a statement issued here, Nepal’s central bank, Nepal Rastra Bank (NRB) said the customs duty on gold has been raised so as to control excessive gold import and dollar deficit in the country.
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After a hike of Rs 480 per 10 gram by the Indian budget, gold traders here had been insisting on import duty equal to India’s customs as the price of gold in the Indian market became Rs 350 more than in Nepal, which could cause gold smuggling due to open border and dollar flight.
Analysts said, with Indian customs rate of Rs 480 per 10 gram and Nepal’s Rs 130 per 10 gram may have caused an alarming situation as it could have given rise to black marketing.
Now that the new customs rate of the two countries are more or less similar, it will definitely curb excessive gold import and smuggling too, they added.
However, Nepal Gold and Silver Dealers’ Association (NEGOSIDA), said that along with the decision for price adjustment of gold with the Indian customs duty, the government should also increase the inflow of Indian currency.
“ There must be a balance between Indian currency and US dollar as shortage of Indian currency can create black marketing which in turn would lead to hike in the price of gold and also different items,” it said in a statement.
The association has urged the government to allow gold import through hand carry process so that there won’t be excessive import as one can only import 20-25 kilos of gold per day through hand carry.
