Gold becomes dearer in Nepal from this week to prevent rampant smuggling to India after the Indian government hiked duty on the yellow metal.
Heeding the urging by gold dealers, Nepal's cabinet Sunday decided to increase customs duty on gold by NRS 340 per 10 gm. The metal will now cost NRS 470 per 10 gm against the earlier NRS 130.
Gold traders had been asking the government to hike import duty after the Indian budget hiked gold price by NRS 480.
The hike made gold cheaper in Nepal and triggered fears that it would be smuggled out to India.
The commerce and supplies ministry also asked the government to increase import duty to prevent excessive import of gold.
Last year, Nepal imported gold worth NRS 14,000 million. However, this financial year, the import has already crossed over NRS 37,000 million.
Source : Sify.com