KATHMANDU,
The central bank has been resisting continued pressure from bullion traders to increase the quota. Only commercial banks are allowed to import gold .
While the central bank is concerned that a hike in the quota
Showing posts with label Gold Import. Show all posts
Showing posts with label Gold Import. Show all posts
Wednesday, December 18, 2013
Gold import quota comes down to 15 kg a day
The central bank has been resisting continued pressure from bullion traders to increase the quota. Only commercial banks are allowed to import gold .
While the central bank is concerned that a hike in the quota
Sunday, May 6, 2012
Gold import through hand carry should be more relaxed
KATHMANDU, May 6, 2012
Citing their inability to supply gold during marriage and festive seasons, yellow metal dealers have urged the government to open import of gold through hand carry, allowing Nepalis residing abroad for at least six months to bring in as much as 5 kg of gold to manage supplies.
Though dealers presently receive 20 kgs of gold from the commercial banks, as provisioned by the Nepal Rastra Bank, they claimed the supply was falling far short to meet local demand, which soars during marriage season and festivals.
“The ceiling set by the central bank is fine for off seasons. But as we have marriage season and other festivals almost every alternative month, we have consistently failed to manage supplies with the volume supplied to us,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (Negosida).
While the frequent scarcity has been troubling consumers, both in terms of supply as well as fair pricing, dealers too have been complaining that it has been affecting their businesses during peak demand period.
Referring to such a situation, the association had recently held talks with senior NRB officials to resolve the problems. But after the central bank declined to help, say gold import in just 8 months of 2011/12 has already crossed over Rs 16 billion - which is higher than its liking, the association has knocked on the doors of Ministry of Finance (MoF).
“We are not seeking immediate changes in the provision. But given that gold holds special meaning in individual and social life, there has to be some permanent solution to the current problem. Hence, our push for change is from the new fiscal year,” said Shakya.
Presently, the government allows Nepalis to bring in only up to 350 grams of gold through hand carry luggage. Till a few years ago, Nepalis residing abroad for more than 6 months were allowed to bring in as much as 10 kgs of gold through hand carry.
But after the import suddenly rose to over Rs 41 billion in 2009/10, which contributed in a sharp rise in trade deficit and depletion of foreign currency reserve, the government tightened its import.
Though Nepalis in recent years, particularly after stock and real estate market slide, started putting in their money on gold to take profit out of soaring international prices, NRB had primarily assessed that unprecedented rise in import was due to illicit outflow of yellow metal to India, where import duty was much higher than in Nepal.
Following such assessment, the government jacked up the import rates and also lowered the import through hand carry to 1 kg per person in 2010/11 and further limited it at 350 grams per person in this fiscal year.
As lowering import limit through hand carry raised transaction cost, dealers are barely getting any supply though that source.
“The provision has helped the economy greatly, but turned the market jittery. Unfortunately, this is giving rise in illicit inflow of gold during seasons when demand rise, distorting prices and also resulting in massive outflow of Indian rupee,” said Shakya, pushing for the relaxation in the provision.
Source: Republica
Citing their inability to supply gold during marriage and festive seasons, yellow metal dealers have urged the government to open import of gold through hand carry, allowing Nepalis residing abroad for at least six months to bring in as much as 5 kg of gold to manage supplies.
Though dealers presently receive 20 kgs of gold from the commercial banks, as provisioned by the Nepal Rastra Bank, they claimed the supply was falling far short to meet local demand, which soars during marriage season and festivals.
“The ceiling set by the central bank is fine for off seasons. But as we have marriage season and other festivals almost every alternative month, we have consistently failed to manage supplies with the volume supplied to us,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (Negosida).
While the frequent scarcity has been troubling consumers, both in terms of supply as well as fair pricing, dealers too have been complaining that it has been affecting their businesses during peak demand period.
Referring to such a situation, the association had recently held talks with senior NRB officials to resolve the problems. But after the central bank declined to help, say gold import in just 8 months of 2011/12 has already crossed over Rs 16 billion - which is higher than its liking, the association has knocked on the doors of Ministry of Finance (MoF).
“We are not seeking immediate changes in the provision. But given that gold holds special meaning in individual and social life, there has to be some permanent solution to the current problem. Hence, our push for change is from the new fiscal year,” said Shakya.
Presently, the government allows Nepalis to bring in only up to 350 grams of gold through hand carry luggage. Till a few years ago, Nepalis residing abroad for more than 6 months were allowed to bring in as much as 10 kgs of gold through hand carry.
But after the import suddenly rose to over Rs 41 billion in 2009/10, which contributed in a sharp rise in trade deficit and depletion of foreign currency reserve, the government tightened its import.
Though Nepalis in recent years, particularly after stock and real estate market slide, started putting in their money on gold to take profit out of soaring international prices, NRB had primarily assessed that unprecedented rise in import was due to illicit outflow of yellow metal to India, where import duty was much higher than in Nepal.
Following such assessment, the government jacked up the import rates and also lowered the import through hand carry to 1 kg per person in 2010/11 and further limited it at 350 grams per person in this fiscal year.
As lowering import limit through hand carry raised transaction cost, dealers are barely getting any supply though that source.
“The provision has helped the economy greatly, but turned the market jittery. Unfortunately, this is giving rise in illicit inflow of gold during seasons when demand rise, distorting prices and also resulting in massive outflow of Indian rupee,” said Shakya, pushing for the relaxation in the provision.
Source: Republica
Saturday, May 5, 2012
Govt hikes gold import duty to Rs 2,300
The government has once again hiked the import duty on gold in a bid to control smuggling of the yellow metal to India.
A Cabinet meeting on Thursday decided to increase the duty by Rs 800 per 10 grams to Rs 2300. The government had last hiked the tax in February—from Rs 1,000 per 10 grams to Rs 1,500.
This is the fourth time in two years that the duty has been jacked up. Two years ago, the duty was at Rs 130 per 10 grams.
The fresh hike in gold import duty is expected to send the price of the precious metal soaring. Gold was traded at Rs 47,495 per 10 grams on Thursday. “The latest duty increment will push the gold price higher,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealer’s Association (Negosida), which determines the gold price in the local market.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. “The latest government decision will address gold shortage in domestic market,” said Shakya.
The government has maintained a quantitative restriction on gold import since 2010 after massive imports led to a negative balance of payments. The gold import quota is presently 20 kg daily. Gold traders say as the import duty in Nepal was lower than that in India, half of the 20kg gold was being smuggled to the southern neighbour.
Each time India raises the customs duty on gold imports, Nepal faces pressure to adjust the duty here to control smuggling.
Source: Kantipur
A Cabinet meeting on Thursday decided to increase the duty by Rs 800 per 10 grams to Rs 2300. The government had last hiked the tax in February—from Rs 1,000 per 10 grams to Rs 1,500.
This is the fourth time in two years that the duty has been jacked up. Two years ago, the duty was at Rs 130 per 10 grams.
The fresh hike in gold import duty is expected to send the price of the precious metal soaring. Gold was traded at Rs 47,495 per 10 grams on Thursday. “The latest duty increment will push the gold price higher,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealer’s Association (Negosida), which determines the gold price in the local market.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. “The latest government decision will address gold shortage in domestic market,” said Shakya.
The government has maintained a quantitative restriction on gold import since 2010 after massive imports led to a negative balance of payments. The gold import quota is presently 20 kg daily. Gold traders say as the import duty in Nepal was lower than that in India, half of the 20kg gold was being smuggled to the southern neighbour.
Each time India raises the customs duty on gold imports, Nepal faces pressure to adjust the duty here to control smuggling.
Source: Kantipur
Gold hits all-time high of Rs 48K per 10gm
KATHMANDU, MAY 05, 2012
Gold price hit an all-time high of Rs 48,010 per 10 gm (Rs 56,000 per tola) on Friday, jumping Rs 514 per 10 gm overnight.
The price was at Rs 47,495 per 10 gm on Thursday. The previous record was Rs 47,580 per 10 gm set on Nov 30, 2011.
The latest surge in the price is due to the hike in gold import duty, said Tej Ratna Shakya, chairman of Nepal Gold and Silver Dealers Association (Negosida). A Cabinet meeting on Thursday increased the duty to Rs 2.300 per 10 grams.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here. “The latest hike in import duty has discouraged smuggling of gold to India,” said Shakya.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. According to Shakya, gold supply in domestic market eased from Friday.
Source: Kantipur
Gold price hit an all-time high of Rs 48,010 per 10 gm (Rs 56,000 per tola) on Friday, jumping Rs 514 per 10 gm overnight.
The price was at Rs 47,495 per 10 gm on Thursday. The previous record was Rs 47,580 per 10 gm set on Nov 30, 2011.
The latest surge in the price is due to the hike in gold import duty, said Tej Ratna Shakya, chairman of Nepal Gold and Silver Dealers Association (Negosida). A Cabinet meeting on Thursday increased the duty to Rs 2.300 per 10 grams.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here. “The latest hike in import duty has discouraged smuggling of gold to India,” said Shakya.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. According to Shakya, gold supply in domestic market eased from Friday.
Source: Kantipur
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