Gold and Jewelry Federation Urges Government to Reconsider VAT and Luxury Tax

The Federation of Nepal Gold Silver, Gem and Jewelry Associations has called on the government to reconsider its decision to impose VAT on diamonds and gemstones and a 2% luxury tax on gold items.

Speaking at a press conference on Monday, Federation Chair Sumanman Tamrakar warned that the new tax provisions could severely impact the industry, which involves over 25,000 entrepreneurs and Rs. 350 billion in investment, potentially forcing some businesses to shut down.

The Federation emphasized the sector's significant contribution of Rs. 20 billion in annual revenue, and cautioned that the new policy would affect not only traders but also thousands of artisans and their families.