Nepal reduced customs duty on gold, price reduced by Rs 15,900. Also know how much cheaper it will cost for Indian people to buy.

Huge fall in gold prices in Nepal: India's neighboring country, Nepal, has recently been in the news for its gold prices. Nepal government has reduced the gold prices outright by Rs 15,900. This step has been taken in view of India's stance. India had reduced the import duty on gold and silver from 15 percent to 6 percent in its budget in July, due to which the price of gold became cheaper by about Rs 6 thousand. Nepal has also taken steps on similar lines and reduced its customs duty by 50 percent.

gold import duty

Nepal government has reduced the import duty on gold from 20 percent to 10 percent. This decision was taken in the cabinet meeting last Thursday and was implemented from Monday. Earlier, Nepal had increased the customs duty on gold by 5 percent to 20 percent in its budget.

prevention of trafficking

After reduction in import duty in India, gold was expensive in Nepal and cheap in India. Due to this imbalance, smuggling of gold had increased. According to the federation, the imbalance in customs duties due to the open border encouraged illegal trade. To stop this, the federation had suggested that the customs duty on gold should be increased to 8 percent, however now it has been reduced to 10 percent.

Gold prices in India and Nepal

Despite gold becoming cheaper in Nepal, its price remains higher than India. The price of 10 grams of gold in India is approximately Rs 79,595, while in Nepal the price of gold in Indian currency is approximately Rs 80,930 per 10 grams. This means that even now the price of gold in Nepal is higher than in India.

What impact this decision will have on gold trade in Nepal remains to be seen. Nevertheless, this reduction in current prices has definitely created a stir in the market.