Kathmandu, 26 July (HS): Following a reduction in customs

duty on gold in India, Nepal feels gold smuggling from India to Nepal may increase.

The Nepal Government recently increased the customs duty on gold in its annual

budget. The yellow metal is cheaper in India compared to Nepal.

Indian Finance Minister reduced the Customs Duty on gold

from 15 per cent to 6 per cent, which resulted in a sharp decline in gold prices

in the Indian market. In Nepal's 2024-25 annual budget, the customs duty was

increased from 15 per cent to 20 per cent.. The customs duty on gold will be 60 per cent less in India,

whereas it will rise by 33 per cent in Nepal.

Traders in the bullion market in Nepal expressed fear of

large-scale smuggling of gold from India to Nepal. Earlier, the smugglers were

using Nepal as a transit country to smuggle gold from China and Dubai. The

chain will be reversed with the recent developments. The porous boundaries of

Nepal helps the smugglers to use its territory for the illegal trades.

Hindusthan Samachar / Ajay Vasant Mardikar / Manoj Kumar Tayal