KATHMANDU: Gold and jewelry traders in Dolakha have launched a protest against the government’s recent decision to increase taxes on precious metals and stones in the new fiscal budget.
The protest began on Thursday with nearly all of the district’s gold and silver shops—estimated at around four dozen—shutting down operations in response to the new tax provisions.
According to Dipak Dhanuk, co-treasurer of the Federation of Nepal Gold Silver Gem & Jewellery Associations, traders have closed their shops from early Thursday morning as a form of pressure after submitting a memorandum to the District Administration Office on Wednesday.
The traders are demanding that the government withdraw the newly introduced taxes: an additional 2% luxury tax on gold and a 13% tax on diamonds and gemstones.
Local jeweler Chakra Ghatani from Mainapokhari, who joined the protest, criticized the tax policy, claiming it undermines domestic traders and encourages illegal gold trade from neighboring India.
He argued that the price gap between Nepal and India—where gold is reportedly up to Rs. 8,000 cheaper per tola—already makes legal trade difficult. Instead of implementing clear policies to control illegal imports, Ghatani said, the government has made legal trading more burdensome.
Traders believe the tax hike will further shrink the domestic market, pushing customers towards unregulated and potentially illicit sources. The president of the Dolakha chapter of the Jewelry Traders’ Association, Anil Rijal, said without a clear and practical regulatory framework, the sector cannot operate smoothly.
He called on the government to not only revoke the newly proposed taxes but also to introduce specific rules and guidelines that promote legal gold and jewelry trade rather than penalize it.
The protest in Dolakha reflects growing discontent among gold traders nationwide, who fear the tax policy could severely hurt their businesses at a time when the industry is already struggling with high import costs and low consumer demand.
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