Hallmark gold price in Nepal on Sunday Rs. 1,67,200 per tola on Monday to Rs. 1,51,300 per tola.
Gold has become significantly cheaper in Nepal, falling to Rs 15,900 apiece tola (11.664 grams). The reduction follows a policy change by the Nepal government, which halved customs duty on gold imports in response to India’s change in gold import taxes.
Earlier this year, in its July budget, India cut import duty on gold and silver from 15% to 6%, making gold cheaper by around Rs 6,000. The government of Nepal has now taken a similar step, reducing its customs duty on gold from 20% to 10%, leading to a dramatic drop in gold prices in Nepal.
As a result, hallmark gold price in Nepal is Rs. 1,67,200 per was reduced tola On Sunday Rs. 1,51,300 per tola on Monday. This Rs. 15,900 showing a significant decrease. The Federation of Nepal Gold and Silver Dealers Association confirmed the new prices on Monday, November 25.
What led to the price drop?
The Nepal government’s decision to reduce customs duty came after India’s budget announcement, which made gold more affordable in India and led to an increase in gold smuggling in Nepal due to price disparity. In response, the government of Nepal took steps to address the imbalance, which encouraged illegal trade across the open border between the two countries.
A major concern for the authorities was the rise in gold smuggling due to the duty gap. The Federation of Nepal Gold and Silver Dealers Association recommended a further reduction in customs duty to 8%, but the government fixed the rate at 10%. The move is aimed at making gold more affordable in Nepal as well as curbing illegal trade.
Gold Prices: Nepal Vs. India
Although the price of gold in Nepal has decreased, gold is slightly more expensive in Nepal than in India. In India, the price of 10 grams of gold is around Rs 79,595, while its equivalent price in Nepal, when converted to Indian rupees, is around Rs 94,366 per. tolaOr for 10 grams around Rs. 80,930.
Thus, while the price reduction in Nepal has made gold more affordable, it is still marginally more expensive than in India. However, the price differential has led to an increase in gold purchases in Nepal, with many consumers buying in bulk in anticipation of further price fluctuations.