Oct 13, Kathmandu- The government has increased customs duty on silver to increase foreign reserves. In the first two months of the current fiscal year, 69,152 kg of silver worth Rs 6.65 billion was imported. The government has decided to increase the customs rate after the same amount of silver arrived in the first two months of this year as compared to last year.

The government has decided to increase the customs duty on silver on Monday. The customs duty on silver was Rs 87 per 10 grams. The government has increased it to Rs 107. After Dashainbida, the notice of increase in customs is published in the Gazette. The Council of Ministers has the right to increase the customs and excise duty on goods imported from abroad by making a decision. The import was Rs 318 billion in two months.

The balance of payments is in deficit due to high imports since the beginning of the current fiscal year. As a result, there is a lack of money to invest in the banking system. Nepal Rastra Bank had suggested to stop the import of some goods and increase the customs duty to discourage imports. Government officials estimate that the silver passing through Nepal has gone to India as the customs duty on silver is higher in India than in Nepal.

"If silver had been imported in two months, only 30 billion rupees would have been imported this year. The customs duty has been increased to stop the flow of silver from Nepal to India," said a Finance Ministry official. According to the Customs Department, 69,152 kg of silver worth Rs 6.65 billion has been imported in the first two months of the current fiscal year. Which is still high.

In the same period last year, Nepal had imported only 1,000 kg of silver worth Rs 76.14 million. In addition, Nepal imported 57,986 kg of silver worth Rs 5.80 billion last year, according to the department. Looking at the data for the first two months of the current fiscal year, more silver has been imported in the last two months than last year. Due to which, pressure has started to be created on the government itself. According to Nepal Rastra Bank, the balance of payments deficit is Rs. 38.75 billion as of mid-July.