KATHMANDU: Gold and silver traders have called on the government to withdraw the luxury tax imposed on gold and silver jewelry, citing its negative impact on an already struggling industry.
Speaking during a meeting of the Finance Committee of the House of Representatives on Monday, representatives of the industry urged the government to recognize gold and silver not as luxury items, but as integral elements of Nepal’s cultural and traditional practices.
Arjun Rasailee, president of the Federation of Nepal Gold and Silver Dealers’ Association, said the luxury tax risks crippling the entire jewelry industry.
“Gold is tied to our culture and rituals. Labeling it a luxury is inappropriate,” he said.
Likewise, Bipendra Ramudamule of the Gold and Silver Artisans’ Struggle Committee argued that raw material access should be eased and the gold quota system scrapped.
The Finance Committee convened the meeting following a formal request from the federation to reconsider the tax provisions. Lawmakers in the committee also expressed concern over the adverse effects on both traders and consumers.
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