Gold and silver dealers continue protests, demand withdrawal of luxury tax

KATHMANDU: Gold and silver dealers across Nepal intensified their protest on Monday, demanding the government immediately revoke what they call an “unjust and impractical” luxury tax imposed on jewelry items.

Shutting down their shops, members of the Nepal Gold and Silver Traders and Artisans Struggle Committee staged a demonstration in Kathmandu’s busy New Road area.

The protest follows the government’s announcement in the annual budget to impose a 2% luxury tax on gold and silver ornaments.

“The new tax has pushed an already struggling industry into deeper crisis,” said Bipendra Ramudamu, coordinator of the struggle committee. He also criticized the planned 13% VAT on precious stones and diamonds used in gold jewelry, calling it unreasonable and harmful to domestic craftsmanship.

Traders argue that treating jewelry—widely accepted in Nepal as a form of liquid asset and cultural necessity—as a luxury item contradicts the Constitution.

“Labeling gold and silver ornaments as luxury goods defies both tradition and the economic reality of our country,” said Ramudamu.

The protest is part of a larger movement by the gold and silver industry to pressure the government to amend the fiscal policy. Traders have warned of escalating their agitation if their demands are not addressed promptly.