Sharp Decline in Raw Gold Imports amid Rising Prices and Increased Taxes
Gold imports into Nepal have seen a significant drop in the first quarter of the current fiscal year, according to the Department of Customs. From Shrawan to Kartik, the country imported a total of 132,564 grams (132.564 kilograms) of gold. This amounted to a foreign expenditure of NPR 1.42 billion (142 crore 75 lakh 28 thousand), with the government collecting NPR 28.55 million (28 crore 55 lakh) in revenue from these imports. In contrast, during the same period last year, gold imports were considerably higher, with 100,500 grams (1000.5 kilograms) of gold being imported. This cost NPR 8.2 billion (820 crore 81 lakh), and the government generated NPR 1.23 billion (123 crore) in revenue. While raw gold imports have decreased, the import of gold jewelry has seen an uptick. By the end of Kartik last year, the value of imported jewelry was NPR 113.2 million (11 crore 32 lakh), whereas this year it has risen to NPR 190.8 million (19 crore 8 lakh). The sharp decline in raw gold imports can be attributed to two key factors: a continuous rise in international gold prices, which has led to reduced consumption, and an increase in domestic taxes, both of which have contributed to the downturn in imports.
