Businessmen used to charge wages and labor charges from 5.99 to 7 percent, but after the reduction of customs, they have increased the wages and labor charges.
After the government reduced the customs rate of gold import by 50 percent, the general public thought that it would be cheaper. Due to the decrease in the customs rate and the price in the international market, the price was reduced by 15 thousand 900 rupees in the local market.
But jewelers are arbitrarily arbitrarily increasing the price of jewelry to the general public in an opaque and mind-blowing manner. This may be the reason, as the customs rate has decreased, the common people have not been able to buy jewelry cheaply.
'On an average, businessmen used to charge up to 10 percent more in the name of wages. As the prices started to rise here, jewelers in New Road and Vishal Bazar areas reduced the wages and started charging from 5.99 to 7 percent. Others in the region took up to 10/12 percent on the same average," said Tejaratna Shakya, former president of the Nepal Gold and Silver Traders Federation. "The price decreased after the government reduced the customs duty by 50 percent. They didn't want to sell the jewelry that was bought at a low price, now they have increased the wage and labor charges again, this is a fraud.'
Since June, all jewelers in Vishalbazar area have reduced their wages. They put up hoarding boards to advertise the reduction in wages. Now the hoarding board has been removed. They have started selling by increasing the price. After all, why did the jewelers reduce the wages and raise them again? Experts say, "This has happened because the customs rates and borders between Nepal and India have been opened."
In the budget of fiscal year 081/82, the customs rate in Nepal increased from 5 percent to 20 percent. But the Indian government reduced the customs rate from 15 percent to 6 percent last July. 3.5% GST is levied in India. Adding all these, the customs rate between Nepal and India is 50 percent different. This is the reason why gold became more expensive in Nepal compared to India. And, open borders encouraged illegal trade.
'Compared to India, the price of tola in Nepal is 18,000 to 20,000 more expensive. Smugglers have taken advantage of this opportunity to enter the border area. The jewelry used in Nepal is of Indian design. Ready-made jewelry that was brought cheaply started being sold here," said a jewelry dealer in Nyrod, "The illegally brought jewelry was sold after reducing the labor charges. Such illegal business continued for 4 months. But after the government reduced the customs, the price of India and Nepal became the same. As the cheap jewelry could not be sold at a high price, the hoarding boards were removed and the wages were increased and gold was sold.'
An example of this is Riddhisiddhi Jewellers, the businessman says. Riddhisiddhi had advertised for the benefit of the consumer that the wage and salary fee would be only 5.99 percent. He changed the advertisement after the government reduced the customs rate. In recent times, it has claimed to take fair and transparent wages, i.e. wages with the consent of the common people. But it has been found that Riddhisiddhi took up to 33.65 percent of wages in Ganesha Locket and 56.25 percent in Tilhari in the name of fair wages.
On this November 13, an excessive amount of money was charged in the name of wages in the bill sold to a consumer. "According to black market law, it is not allowed to take more than 20 percent profit. But more than 56 percent profit has been taken here," said a jeweler, "The business has misled the consumer. Any amount charged in the name of wages. But the government agency is silent on this matter.'
Narendra Kumar Gupta, the owner of Riddhisiddhi, claimed that he sold gold to the general public in a transparent manner. Although they are not allowed to charge extra fees in the name of wages, businessmen charge 2,000 to 5,000.
'The main thing is not to charge additional fees, it is illegal. Wages can be taken,' said Gupta, 'but there is a round table here. Consumers are misled. The state should immediately abolish the system of charging extra fees in the name of gold. Gupta says that the wage of one to two grams of gold is fixed at 5,000.
Gupta says there is a loss of up to one percent in making jewelry. Jarti is the gold that flies away while making jewelry, it is lost during production. "It is not more than 1 percent," he said, "but there is fraud here in the name of that." He also claimed that smuggling has increased because of the customs rate.
Mani Ratna Shakya, the former president of the Federation, said that due to the open border, smuggling has increased and is being done arbitrarily in the name of Jarti.
'There was a lot of smuggling due to high tariffs and open borders. Cheap gold came from India. Silver also came cheap. The market was run with that gold, some of them even sold it by reducing the wages,'' Shakya said, "The shop could be run even if the gold that came at a cheap price was not charged for the wages and wages." That's why it was sold at a reduced price. After the customs adjustment, the price was the same here and there. That's why they have increased the wage-labor fee again.'
Federation president Arjun Rasaili also claimed that due to the illegal importation of gold from India, the wages and labor charges have decreased. But now, when the prices are the same, he says, the wage and labor charges have increased in New Road and Vishalbazar areas. "Some businessmen used to charge an average of 7 percent of wages, now they have increased it to 10 to 12 percent," he said.
After the government reduced the customs rate from 50 percent to 10 percent, businessmen do not smuggle for small profits. The federation claims that there is less possibility of smuggling now. It is said that businessmen only buy and sell gold that suits them.
At this time, the pressure to buy jewelry has increased after the government reduced the gold customs. But they are not selling that much because there is no gold in the market. Businessmen who want to buy as much as they can when it is rising, should also sell when the price of gold falls. Doing business on your own terms is like cheating," said Madhav Timilsina, president of the Consumer Rights Research Forum, "but the government has not paid attention to it. Regulatory bodies should take necessary steps when the market is running erratically.'
Rajan Poudel, Director General of Commercial Supply and Consumer Protection Department, stated that due to the absence of business guidelines, he could not monitor the issues of wages and labor charges.
