Kathmandu: In a dramatic shift, the price of gold in Nepal has dropped sharply following a reduction in the customs duty on the precious metal. On a single day, the price of gold plummeted by Rs 15,900 per tola, following a Cabinet decision to slash the customs duty for gold from 20% to 10%.
Previously, a 20% customs duty had been in place, which was an increase from the earlier 15% rate implemented in the fiscal year 2080/81. However, after the latest Cabinet meeting, the duty reduction has caused a significant drop in gold prices across the Nepali market.
As of today, the price of fine gold has fallen to Rs 151,300 per tola, down from yesterday’s rate of Rs 167,200 per tola, according to the Nepal Federation of Gold and Silver Dealers’ Association.
Silver prices have also taken a hit, with silver now trading at Rs 1,845 per tola, down by Rs 115 from yesterday’s rate of Rs 1,960 per tola. Like gold, the customs duty on silver has also been reduced from 15% to 10%.
The government’s decision to reduce customs duties on both gold and silver is expected to bring relief to consumers, but it also marks a significant change in the precious metals market.