New gold tax Nepal after Budget 2083/84 has been significantly revised by the Government of Nepal through the Finance Bill 2083/84 presented by Finance Minister Dr. Swarnim Wagle on May 29, 2026. The most consequential change is the doubling of customs duty on gold imports from 10 percent to 20 percent, which has pushed domestic gold prices to record highs. This guide has been prepared to explain every tax provision, import rate, baggage rule, compliance obligation, and legal implication that is encountered under the new gold taxation framework. Updated on June 1, 2026.
New gold tax Nepal after Budget 2083/84 refers to the revised taxation structure imposed on gold imports, gold jewelry, and gold transactions following the federal budget announcement for fiscal year 2083/84 BS (2026/27 AD). The Finance Bill 2083/84 introduced a major increase in customs duty on gold from 10 percent to 20 percent, while maintaining the existing 2 percent luxury tax on gold ornaments valued above NPR 10 lakhs. Additionally, the customs valuation methodology for passenger-brought gold was reformed to use real-time international market prices rather than periodic departmental price lists. The new tax regime is administered by the Inland Revenue Department (IRD), the Department of Customs, and Nepal Rastra Bank (NRB). Without proper understanding of these changes, importers, jewelers, and individual travelers cannot assess legal risk or comply with updated requirements. Therefore, comprehension of the new framework is essential for all stakeholders in Nepal's gold market.
The tax increase was introduced because gold imports have been straining Nepal's foreign exchange reserves amid record-high international prices. Consequently, the government sought to reduce import demand while simultaneously increasing revenue collection. Moreover, gold smuggling has escalated significantly, with the Department of Revenue Investigation (DRI) actively monitoring unauthorized gold routes. The Federation of Nepal Gold and Silver Dealers Association (NEGOSIDA) had earlier proposed raising customs duty from 10 percent to 16 percent to align with India's revised gold import duties. However, the government exceeded this recommendation by doubling the rate to 20 percent. For these reasons, new gold tax Nepal after Budget 2083/84 is treated as both a revenue measure and a macroeconomic stabilization tool rather than a routine fiscal adjustment.
Multiple statutes are applied simultaneously to regulate gold taxation in Nepal. The following table summarizes the key legislation and its relevance:
| Legislation | Relevance to New Gold Tax Nepal After Budget 2083/84 | Key Provision |
|---|---|---|
| Customs Act 2064 (2007) | Primary import taxation law | Governs customs duty assessment, valuation, and baggage rules for gold imports |
| Finance Bill 2083/84 (2025-26) | Recent amendments and rate revisions | Doubled gold customs duty from 10% to 20%; reformed valuation methodology |
| Finance Act 2082/83 (2024-25) | Previous year's tax structure | Imposed 2% luxury tax on gold ornaments above NPR 10 lakhs |
| Customs Tariff Act | HS classification and duty rates | Classifies gold under HS Code 7108; sets ad valorem duty rates |
| Foreign Exchange (Regulation) Act | Forex control | Mandates NRB authorization for commercial gold imports |
| Value Added Tax Act 2052 (1997) | Indirect taxation | 13% VAT applies to gold jewelry making charges and services |
| Income Tax Act 2058 (2002) | Capital gains taxation | 10% CGT on profit from gold sales; 1.5% TDS at source |
| National Penal Code 2074 (2017) | Criminal offenses | Defines gold smuggling and economic offenses |
This legal framework is applied simultaneously, meaning all gold-related transactions must satisfy customs, tax, foreign exchange, and criminal law standards.
The Finance Bill 2083/84 introduced several significant changes to gold taxation. The following table compares the old and new provisions:
| Tax Component | Previous Rate (FY 2082/83) | New Rate (FY 2083/84) | Impact |
|---|---|---|---|
| Customs duty on gold (HS 7108) | 10% | 20% | Doubled; major price increase |
| Customs duty on gold jewelry | 15% | 20% | Increased by 5 percentage points |
| Luxury tax on gold ornaments | 2% (above NPR 10 lakhs) | 2% (above NPR 10 lakhs) | Unchanged |
| VAT on making charges | 13% | 13% | Unchanged |
| Capital gains tax on gold sales | 10% | 10% | Unchanged |
| TDS on gold purchases | 1.5% | 1.5% | Unchanged |
| Customs valuation method | Periodic departmental price list | Real-time international market price | More responsive to global fluctuations |
The doubling of customs duty is the most consequential change, as it directly increases the landed cost of gold and drives domestic prices upward.
The revised customs duty rates for gold and gold-related products are as follows:
| Product Category | HS Code | Customs Duty Rate | Additional Taxes |
|---|---|---|---|
| Gold (unwrought, bars, bullion) | 7108.13 | 20% | Green tax, VAT on services |
| Gold (semi-manufactured, powder) | 7108.12 | 20% | Green tax, VAT on services |
| Gold jewelry (fabricated) | 7113 | 20% | 2% luxury tax (above NPR 10L), VAT |
| Gold coins | 7118 | 20% | Restricted for individual import |
| Silver (unwrought) | 7106 | Existing rate | Green tax, VAT |
The green tax, which replaces the previous infrastructure development tax and road maintenance fee, is applied in addition to customs duty at the import point.
Individual travelers bringing gold into Nepal are subject to specific baggage rules. The following table summarizes the current regulations:
| Passenger Category | Duty-Free Allowance | Taxable Allowance | Confiscation Threshold |
|---|---|---|---|
| Nepali citizens returning after 1+ years abroad | 50 grams gold jewelry | 51–100 grams (duty applicable) | Above 100 grams |
| Foreign tourists visiting Nepal | 50 grams gold jewelry (must take back on exit) | N/A | Above 50 grams without declaration |
| Nepali workers returning from abroad | 100 grams raw gold (taxable) | N/A | Above authorized quantity |
| General travelers | 50 grams gold jewelry | Above 50 grams (customs duty at 20%) | Above 100 grams |
The Finance Bill 2083/84 reformed the customs valuation methodology for passenger-brought gold. Previously, valuation was based on periodic departmental price lists issued on the 1st and 15th of each month. Under the new system, customs officers may determine the customs value by considering the real-time international market price of gold, improving responsiveness and reducing dependence on fixed price lists.
The valuation of gold for customs purposes has been significantly reformed. The following table compares the old and new methodologies:
| Aspect | Previous System | New System (FY 2083/84) |
|---|---|---|
| Price source | Departmental price list (1st and 15th of month) | Real-time international market price |
| Currency conversion | Nepal Rastra Bank official USD/NPR mid-rate | Same, but applied dynamically |
| Frequency of update | Twice monthly | Continuous/real-time |
| Transparency | Fixed; predictable | Market-responsive; variable |
| Impact on passengers | Predictable duty calculation | Duty fluctuates with global prices |
This change means that travelers bringing gold into Nepal will face duty calculations that reflect current global gold prices rather than outdated fixed rates.
The doubling of customs duty has had an immediate and significant impact on domestic gold prices. The following data illustrates the price surge:
| Period | Domestic Price (per tola) | International Price (USD/oz) | Key Driver |
|---|---|---|---|
| January 2026 | NPR 300,000+ | USD 5,551 | Global rally; geopolitical tensions |
| End of January 2026 | NPR 339,300 (record high) | USD 5,551+ | Record global prices |
| Budget announcement (May 29, 2026) | NPR 311,100 | Variable | Duty hike from 10% to 20% |
| Post-budget (June 2026) | Record highs expected | Variable | 20% customs duty fully applied |
Gold prices in Nepal are determined daily by the Nepal Gold and Silver Dealers' Association (NEGOSIDA) based on the London Bullion Market Association (LBMA) AM Fix, converted to NPR using Nepal Rastra Bank's official USD/NPR mid-rate, plus import duty, transportation, and insurance costs. With customs duty now at 20 percent, the premium over international prices has increased substantially.
Registered jewelers and gold dealers must comply with several tax obligations under the new regime. The following table summarizes these requirements:
| Compliance Obligation | Frequency | Authority | Penalty for Non-Compliance |
|---|---|---|---|
| VAT registration (if turnover above NPR 2M) | One-time | IRD | Back-tax liability; penalties |
| VAT return filing | Monthly or bi-monthly | IRD | Late filing fees; interest |
| Luxury tax collection (above NPR 10L sales) | Per transaction | IRD | 25% of luxury fee; assessment |
| TDS deduction on gold purchases (1.5%) | Per transaction | IRD | Penalty for non-deduction |
| Income tax return filing | Annual | IRD | Penalties; blacklisting |
| NBSM hallmarking compliance | Per product | Nepal Bureau of Standards | Product rejection; fines |
| Proper invoicing and record maintenance | Continuous | IRD/DRI | Seizure; prosecution |
Jewelers selling gold ornaments valued above NPR 10 lakhs must collect and remit the 2 percent luxury tax to the IRD by the 25th of the subsequent month.
Individual investors and traders are subject to capital gains tax on profitable gold sales. The following table outlines the CGT framework:
| Aspect | Regulation |
|---|---|
| Tax rate | 10% on net capital gains for individuals |
| Taxable gain | Sale price minus documented purchase cost |
| TDS at source | 1.5% deducted by registered dealers on gross sale value |
| Filing requirement | Net CGT declared in annual income tax return |
| Holding period distinction | None; all gold sales taxed at 10% regardless of duration |
| Exemption | No general exemption for personal jewelry sales |
Example calculation: If gold purchased for NPR 334,730 (including making charges) is sold for NPR 380,000, the capital gain is NPR 45,270. CGT at 10 percent equals NPR 4,527. After TDS of NPR 5,700 (1.5 percent of NPR 380,000), a net refund of NPR 1,173 is claimable through annual tax filing.
The increased customs duty has heightened concerns about gold smuggling. The following enforcement measures are in place:
| Enforcement Measure | Description | Legal Consequence |
|---|---|---|
| Airport screening | X-ray, scanners, and profiling at Tribhuvan International Airport | Seizure of undeclared gold |
| Border surveillance | Monitoring of land border crossings with India and China | Arrest and prosecution |
| DRI investigation | Active monitoring of smuggling routes by Department of Revenue Investigation | Criminal prosecution under National Penal Code |
| NRB authorization | Mandatory banking channel verification for commercial imports | License revocation; penalties |
| Confiscation | Seizure of gold exceeding permitted quantities without declaration | Forfeiture to government; fines |
Gold smuggling is treated as a serious economic offense under the National Penal Code 2074. Penalties include imprisonment, fines equivalent to the value of seized gold, and confiscation of smuggled goods.
The import process for commercial gold has been made more stringent. The following steps must be followed:
Commercial gold imports require authorization from Nepal Rastra Bank. The importer must demonstrate foreign exchange availability and legitimate business purpose.
An import license is obtained from the Department of Customs. The license specifies the quantity, value, and HS classification of gold to be imported.
Payment must be routed through NRB-approved banks via Letter of Credit (L/C) or advance payment. Cash transactions for commercial imports are prohibited.
Upon arrival, gold is declared at customs. Customs duty at 20 percent is calculated based on the real-time international market price and paid before release.
The unified green tax is applied in addition to customs duty. Previous separate levies (infrastructure development tax, road maintenance fee) have been consolidated.
If the importer is a jeweler or trader with turnover exceeding NPR 2 million, VAT registration and monthly return filing are mandatory.
Detailed import records, invoices, and duty payment vouchers must be maintained for IRD and DRI inspection.
The total cost of importing gold legally is determined by international price, customs duty, and additional taxes. The following table provides an illustrative breakdown for 1 kilogram of gold bullion:
| Cost Component | Calculation Basis | Estimated Amount (NPR) |
|---|---|---|
| International gold price (LBMA fix) | USD 3,500/oz × 32.15 oz | ~1,125,250 at USD/NPR 135 |
| Customs duty (20%) | 20% of CIF value | ~225,050 |
| Green tax | Consolidated levy | Variable |
| Insurance and freight | Actual cost | ~5,000–15,000 |
| Banking charges | L/C or advance payment fees | ~10,000–25,000 |
| VAT on services | 13% on making charges (if applicable) | Variable |
| Total Landed Cost | — | ~1,365,000+ |
This represents a significant increase from the previous fiscal year when customs duty was 10 percent.
Several errors are frequently made by importers, travelers, and jewelers. These mistakes are listed below so they can be avoided:
| Common Mistake | Consequence | Prevention Strategy |
|---|---|---|
| Failing to declare gold at customs | Seizure; fines; criminal prosecution | Always declare quantities above duty-free limits |
| Using outdated price lists for duty calculation | Incorrect payment; penalties | Use real-time international prices |
| Importing without NRB authorization | License denial; legal action | Obtain NRB approval before import |
| Selling gold without proper invoicing | Tax evasion charges; penalties | Issue VAT invoices for all transactions |
| Ignoring luxury tax on high-value sales | Assessment; 25% penalty | Collect and remit 2% luxury tax above NPR 10L |
| Failing to deduct TDS on purchases | Penalty for non-compliance | Deduct 1.5% TDS on all gold purchases |
Professional legal and tax assistance is highly recommended because gold import compliance involves multiple authorities including NRB, Customs, and IRD. A qualified law firm ensures proper documentation, duty calculation accuracy, and ongoing tax compliance. Attorney Nepal PVT LTD is recognized as a leading legal service provider for customs and tax compliance in Nepal. The firm specializes in import licensing, customs duty disputes, VAT compliance, and representation before the Department of Revenue Investigation. Importers and jewelers are advised to engage experienced legal counsel to avoid costly delays, seizures, and regulatory penalties.
1. What is the new customs duty on gold imports in Nepal?
The customs duty on gold imports has been doubled from 10 percent to 20 percent under the Finance Bill 2083/84 presented on May 29, 2026.
2. Does the new gold tax apply to gold jewelry as well?
Yes. Customs duty on gold jewelry (fabricated gold under HS Code 7113) has been increased from 15 percent to 20 percent.
3. What is the duty-free allowance for gold jewelry for travelers?
Nepali citizens returning after one year abroad can bring up to 50 grams of gold jewelry duty-free. Foreign tourists can bring up to 50 grams provided it is taken back on exit.
4. How is customs valuation for passenger-brought gold determined now?
Under the new system, customs officers determine value based on real-time international market prices rather than periodic departmental price lists.
5. Is the 2 percent luxury tax on gold still applicable?
Yes. The 2 percent luxury tax on gold ornaments valued above NPR 10 lakhs remains unchanged under the new budget.
6. What is the capital gains tax rate on gold sales in Nepal?
Capital gains tax on gold sales is 10 percent on net profit for individuals. Registered dealers deduct 1.5 percent TDS at source.
7. Can individuals import commercial gold for resale?
No. Commercial gold imports require NRB authorization, customs licenses, and banking channel compliance. Individuals cannot freely import gold for commercial resale.
8. What are the penalties for gold smuggling in Nepal?
Penalties include seizure of gold, fines equivalent to the value of seized goods, imprisonment under the National Penal Code, and confiscation of property.
9. Has VAT on gold jewelry changed?
No. VAT at 13 percent continues to apply to making charges and services related to gold jewelry. Raw gold value is VAT-exempt.
10. Where can official gold tax rates and customs rules be verified?
Official rates are published by the Department of Customs at https://customs.gov.np and the Inland Revenue Department at https://ird.gov.np. NEGOSIDA publishes daily gold prices at https://goldnepal.org.np.
The following authoritative sources are referenced for legal verification and SEO backlinking purposes:
Disclaimer: The information presented in this guide is intended for general educational purposes and does not constitute legal or tax advice. Laws and regulations in Nepal are subject to amendment, and individual circumstances may vary. Professional legal and tax consultation is recommended before any action related to new gold tax Nepal after Budget 2083/84 is commenced. Attorney Nepal PVT LTD disclaims liability for any actions taken based on this content without independent professional verification. Updated on June 1, 2026.
June 01, 2026 - BY Admin