Customs duty on gold lowered to 10%

KATHMANDU: The government has lowered customs duty on gold to 10% from the existing 20%.

According to the Department of Customs, the decision was taken by a cabinet meeting held on Thursday.

The decision follows neighboring India’s decision to lower customs duty on yellow metal to 6% from 15%. Customs duty revision in India made gold cheaper in India which increased gold smuggling from India to Nepal.

The government took the decision after gold imports fell significantly over the first four months of the current fiscal year. Nepal imported 132.56 kg of gold worth Rs 1.42 billion in the first four months of the current fiscal year, according to the Department of Customs. This is significantly lower compared to the same period of the previous fiscal year when 1,000.5 kg of gold worth Rs 8.20 billion was imported into the country.

The government had increased customs duty on gold to 20% from 15% through the budget for the fiscal year 2024/25 brought by the Pushpa Kamal Dahal-led government in mid-July.

Meanwhile, the customs duty on silver has been lowered to 10% from 15%.