Duty hike pushes gold to record high of Rs 311,100

KATHMANDU: Gold prices in Nepal surged to a record high on Sunday after the government doubled customs duty on gold imports in the budget for the upcoming fiscal year.

The duty hike triggered the sharpest single-day increase in the domestic market in recent years, according to jewelers.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold rose by Rs 20,500 per tola to reach Rs 311,100 on Sunday. Gold had traded in the domestic market at Rs 290,600 per tola on Friday.

Presenting the budget for fiscal year 2026/27 in parliament on Friday, Finance Minister Swarnim Wagle raised customs duty on gold from 10% to 20%. While the government removed the existing 2% luxury tax levied by former finance minister Bishnu Paudel, the doubling of customs duty significantly raised procurement costs.

The budget also raised customs duty on silver by 10 percentage points to 20%. This duty hike pushed the price of silver by Rs 305 per tola to Rs 5,345.