Deuba for lowering duty, raising import quota to control gold smuggling

KATHMANDU: Nepali Congress President Sher Bahadur Deuba has proposed to lower customs duty on gold and increase its import quotas to control the smuggling of the yellow metal.

Speaking at the parliamentary committee meeting of the party on Monday, Deuba said gold smuggling has been going on years due to high duty and import restrictions. “If we fail to make these adjustments, the problem of gold smuggling will persist,” he added.

Critics have pointed to the perceived ineffectiveness of both the finance minister and the Customs Department in controlling gold smuggling. Nepali Congress leader Dr Prakash Sharan Mahat is currently leading the finance ministry.

The Nepal Rastra Bank (NRB) has previously granted commercial banks the authority to import up to 20 kg of gold daily. However, as part of a governmental effort to bolster foreign exchange reserves by curbing imports, the central bank slashed the import quota to 10 kg per day in March last year.

Jewelers have consistently voiced their concerns about the import quota, stating that it falls short of meeting the burgeoning demand for gold in the country.