Gold Price In Nepal: The price of the yellow metal fell significantly by Rs 15,900 per tola (11.664 grams) on Monday after the Nepal government decided to halve the customs duty on gold. According to the Federation of Nepal Gold and Silver Dealers Associations, the price of hallmark gold has been fixed at Rs 1,51,300 per tola on Monday, which was Rs 1,67,200 per tola on Sunday.

Gold price in Nepal: Customs duty reduced from 20% to 10%

The government has reduced the customs duty on gold imports from 20 percent to 10 percent. Officials said the decision was taken in a cabinet meeting last Thursday. India had reduced customs duty on gold and silver from 15 percent to six percent through its budget.

Gold price in Nepal: Customs duty was increased recently

In contrast, Nepal had raised customs duty on gold by 5 percent to 20 percent in the current fiscal year's budget. This made gold expensive in Nepal and cheaper in India, leading to increased gold smuggling.

According to the federation, the imbalance in customs duty due to the open border encouraged illegal trade. To prevent such trade, the federation suggested that the customs duty on gold be increased to eight per cent.