Gold traders welcome government's customs duty reduction

Kathmandu, November 25 — Following the government's reduction in gold customs duties, the price of gold has dropped significantly. On Monday, the price of gold decreased by NPR 15,900 in a single day. As a result, the price of gold per tola is now NPR 151,300.

With the decrease in the price of gold and silver, the stock prices held by traders across the country have also fallen accordingly. This has led to significant losses for the traders.

However, gold and silver traders have welcomed the government's decision. Former president of the Federation of Nepal Gold and Silver Dealers' Association, Manik Ratna Shakya, stated that the government's move to reduce the gold customs duty is a commendable decision. He mentioned that they have been requesting a revision of the customs duties for a long time, and the government has fulfilled their demand.

"This is something we have been asking for a long time. While the reduction in customs duty has led to losses for traders with gold stocks, it will also reduce illegal imports and promote legal trade in gold and silver. This will help stabilize the market," he said.

The higher customs duty on gold compared to India had led to smuggling activities. This was one of the reasons why gold and silver businesses in border areas were nearly shut down. Smugglers were making large profits, leading to the illegal transport of gold.

Shakya believes that this situation will significantly decrease, and the tendency of Nepali people to go to the border markets in India to bring in gold will also reduce.