Gold Just Got Heavier: Nepal's New Rules for the Gold and Silver Market in 2083/84

Here is what actually changed, and what it means whether you are a jeweller in Asan, a returning migrant worker with a suitcase full of bangles, or a family quietly saving for a wedding.

The headline: customs duty doubled

Finance Minister Dr. Swarnim Wagle presented the budget on 29 May 2026, and the single biggest change was the customs duty on gold imports, which jumped from 10 percent to 20 percent. Silver got the same treatment, also moving from 10 percent to 20 percent. Finished gold jewellery imported under HS heading 7113 went from 15 percent to 20 percent, closing the old gap between raw metal and finished ornaments.

The government's stated reasoning was twofold: raise revenue, and curb consumption of what the budget classifies as a luxury import. There is a balance-of-payments argument underneath it too. Gold imports eat into foreign exchange reserves, and with international prices sitting at historic highs, every kilogram brought in costs more dollars than it did a year ago.

The industry had asked for something gentler. The Federation of Nepal Gold and Silver Dealers Association had proposed a move to 16 percent, roughly matching India's revised rates. The government went past that recommendation and doubled it instead.

What was taken away

It was not all addition. The budget scrapped the 2 percent luxury fee on gold ornaments that had been introduced the previous year, and it removed the 13 percent VAT on diamonds and precious stones. Diamonds instead moved to a per-carat customs charge, rising from 1 percent to 5 percent per carat.

This part has caused genuine confusion in the market, because several tax advisories published soon after the budget still describe the 2 percent luxury fee as active. If you run a shop and this affects your billing, do not rely on a blog post. Check the gazetted Finance Act 2083 and the Inland Revenue Department's own notices before deciding what to collect at the counter.

A new 0.5 percent fee at the till

The budget also introduced something entirely new: a 0.5 percent Skill Promotion Fee, charged to the consumer on the sale of gold, silver, and ornaments and articles made from them. It is small in percentage terms but it applies at the retail point, which means it shows up on ordinary customers' bills rather than being buried in import paperwork. On a purchase of one tola, it is a few hundred rupees. On a full wedding set, it adds up.

How customs now values gold you carry in

The gram limits for travellers did not change. Nepali citizens returning after a year abroad can bring 50 grams of gold jewellery duty-free if they are women and 25 grams if they are men, with a further allowance above that on which duty must be paid. Foreign visitors may bring up to 50 grams provided it leaves with them. Bars, biscuits, and coins remain a separate matter and require Nepal Rastra Bank approval regardless of weight.

What did change is how the customs officer puts a value on that jewellery. Previously, valuation ran off departmental price lists issued on the 1st and 15th of each month. Under the new system, officers may use the real-time international market price of gold. In a market where prices move by thousands of rupees per tola in a week, this is a meaningful shift. It closes a timing loophole, but it also means travellers can no longer predict their duty bill from a fixed published sheet.

The paperwork side: FATF and cash

Running alongside the budget is a tightening that has nothing to do with revenue. Nepal is on the Financial Action Task Force grey list and is working through a two-year action plan to get off it. Precious metals dealers sit squarely in the FATF's line of sight, and the directives that have followed are strict.

The key one: when a dealer sells precious metals or articles worth Rs 1 million or more in a single transaction, payment must come from the bank account of the customer or a family member. No suitcase of cash. Dealers must also identify politically exposed persons on a risk basis and keep those records updated and secure. Non-compliance carries a fine of up to Rs 10 million.

For an industry where a large share of business has historically run on cash and trust, this is the change that will reshape day-to-day operations more than any duty rate.

What Nepal Rastra Bank is doing

The central bank controls the tap. The daily gold import ceiling for commercial banks stands at 25 kilograms, raised from 20 to keep supply moving through the festive season. On silver, NRB has eased foreign exchange access: industries using silver as raw material for jewellery, artefacts, and utensils can access up to USD 500,000 per transaction, while other silver traders are capped at USD 100,000. Banks must verify that previously imported silver was exported as declared before approving the next facility.

The market's reaction, and the risk nobody is ignoring

The price response was immediate. Fine gold rose Rs 20,500 in a single day after the budget, moving from Rs 290,600 per tola to Rs 311,100. Silver climbed Rs 305 to Rs 5,345 per tola. By 10 July 2026, fine gold in Kathmandu was quoted at Rs 287,400 per tola, still far above where most middle-income buyers are

comfortable.

The uncomfortable precedent sits only two years back. In 2024, Nepal raised gold duty to 20 percent while India cut its own rate to 6 percent. The gap fed smuggling across the open border, formal imports collapsed, and the government reversed course in December 2024, dropping the duty back to 10 percent. Traders are openly warning that the same script could repeat unless Nepal and India stay roughly in step.

The practical takeaway

For buyers, budget for a slightly higher final bill and insist on a proper invoice showing each component. For anything near Rs 10 lakh, plan to pay by bank transfer. For traders, the compliance burden is now the real cost, not the duty line. And for anyone flying home with gold, declare it. At current prices, guessing wrong at the customs desk is an expensive mistake.