Gold and Silver Traders Call Off Protest After Reaching Six-Point Agreement with Government

Gold and silver traders have officially called off their protest programs following a six-point agreement reached with the government on Thursday. According to Dharmasundar Bajracharya, Second Vice President of the Nepal Gold and Silver Dealers’ Federation, shops will reopen from Friday and resume normal operations.

The traders had launched protests nearly a month ago against the government's move to impose a 2% luxury tax on gold transactions and a 13% VAT on diamond-studded jewelry, as introduced in the budget for fiscal year 2082/83. Citing adverse impacts on both businesses and consumers, they had closed their shops, leading to a halt in price determination as well.

In the agreement reached during a meeting at the Ministry of Finance, both sides agreed to form a task force to review the classification of gold and gold ornaments as luxury goods. Until the task force submits its report, the implementation of the newly introduced tax and VAT has been paused, although this provision is not explicitly mentioned in the written agreement. Additional agreements include facilitating the import of gold from nearby trade centers, ensuring clear regulations for distribution, and making necessary revisions to the Gold Import and Distribution Procedures, 2068. The task force will be housed under the Revenue Management Division of the Finance Ministry.