Monday, May 7, 2012
Gold hits new record, Rs. 56,000 per tola in kathmandu, Nepal
Now in domestic market in Nepal Gold price jumps to Rs 56,000(Rs. 47,925 per 10 grams) per tola. It is new record in gold price. The price has increased from previous record of Rs 55,800 per tola Previous day. Citing to supply gold during marriage and festive seasons, yellow metal increases price according by gold merchants.
Sunday, March 18, 2012
Gold price set to rise after India hikes customs duty
Gold price is likely to go up in the domestic market as the government is being pushed to hike import duty on precious yellow metal following the Indian government´s decision to raise customs duty on imports of gold.
The Indian government, through budget speech on Friday, hiked basic customs duty on standard gold bars, over 99.5 percent pure gold coins and platinum from 2 percent to 4 percent, citing widening current account deficit triggered by “growth of almost 50 percent in imports of gold and other precious metals in the first three quarters of this year”.
The latest change in tax rate means Indian importers will have to pay IRs 1,080 (Rs 1,728) while bringing in every 10 grams of gold which is lower than Nepal´s Rs 1,500. This has raised chances of smuggling of gold from Nepal to India through porous borders.
“To prevent this we have already asked the Ministry of Finance and Nepal Rastra Bank to revise customs duty so that illegal traders cannot take benefit of the change in India´s customs tax rate,” Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association, told Republica.
Although he is yet to make a formal request in this regard, Shakya said Nepal government should raise customs duty by at least 50 percent. “This change will ultimately make gold pricier in the country,” he said.
Around 13 years ago when Nepal´s import duty was two percentage points lower than India´s 10 percent, Nepal imported up to 134 tons of gold in a year, whereas annual domestic demand at that time was only 15 tons. Most of this gold, traders claim, entered India illegally.
“The possibility of return of such a trend cannot be ruled out if changes to customs duties are not made immediately,” Shakya said.
The government in February raised imports duty on gold to Rs 1,500 per 10 grams following the Indian government´s announcement to raise the tax to IRs 540 on imports of every 10 grams of gold. Similar adjustments were made in the past as well.
The government has currently given permission to release 20 kgs of gold per day in the market. This amount of gold is distributed by 13 commercial banks on rotation basis. from myrepublica.com
The Indian government, through budget speech on Friday, hiked basic customs duty on standard gold bars, over 99.5 percent pure gold coins and platinum from 2 percent to 4 percent, citing widening current account deficit triggered by “growth of almost 50 percent in imports of gold and other precious metals in the first three quarters of this year”.
The latest change in tax rate means Indian importers will have to pay IRs 1,080 (Rs 1,728) while bringing in every 10 grams of gold which is lower than Nepal´s Rs 1,500. This has raised chances of smuggling of gold from Nepal to India through porous borders.
“To prevent this we have already asked the Ministry of Finance and Nepal Rastra Bank to revise customs duty so that illegal traders cannot take benefit of the change in India´s customs tax rate,” Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association, told Republica.
Although he is yet to make a formal request in this regard, Shakya said Nepal government should raise customs duty by at least 50 percent. “This change will ultimately make gold pricier in the country,” he said.
Around 13 years ago when Nepal´s import duty was two percentage points lower than India´s 10 percent, Nepal imported up to 134 tons of gold in a year, whereas annual domestic demand at that time was only 15 tons. Most of this gold, traders claim, entered India illegally.
“The possibility of return of such a trend cannot be ruled out if changes to customs duties are not made immediately,” Shakya said.
The government in February raised imports duty on gold to Rs 1,500 per 10 grams following the Indian government´s announcement to raise the tax to IRs 540 on imports of every 10 grams of gold. Similar adjustments were made in the past as well.
The government has currently given permission to release 20 kgs of gold per day in the market. This amount of gold is distributed by 13 commercial banks on rotation basis. from myrepublica.com
Thursday, February 23, 2012
Nepal Rastra Bank increases gold import limit to 20 kg per day
Nepal Rastra Bank (NRB) has increased the limit for gold imports to 20 kg from 15 kg per day following the demand from the gold entrepreneurs on Tuesday.
However, the Nepal Gold and Silver Dealers’ Association said the increased quota of the gold is still insufficient to meet the demand in the domestic market as the daily demand of the gold stands around 35 kg.
The gold traders have been demanding an increase in the import quota to least to 30 kg per day in view of growing demand.
The bullion traders also said that insufficient import and increase in the demand of the precious metal has also boosted illegal imports from India. sourcenepalnews.com
However, the Nepal Gold and Silver Dealers’ Association said the increased quota of the gold is still insufficient to meet the demand in the domestic market as the daily demand of the gold stands around 35 kg.
The gold traders have been demanding an increase in the import quota to least to 30 kg per day in view of growing demand.
The bullion traders also said that insufficient import and increase in the demand of the precious metal has also boosted illegal imports from India. sourcenepalnews.com
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