Kathmandu – Nepal’s gold, silver, and gemstone traders staged a mass protest on Friday in response to the government’s recent tax increase on the precious metals and jewelry sector. The rally was held in Kathmandu to oppose the new tax policy introduced in the national budget for the upcoming fiscal year.
The demonstration was jointly organized by the Federation of Nepal Gold and Silver Dealers’ Association, the Nepal Gem and Jewelry Association, and the Federation of Handicraft Associations of Nepal. It began at Maitighar Mandala and proceeded to New Baneshwor, culminating in a corner assembly.
Traders Voice Alarming Concerns Over New Tax Policy
A large number of traders, goldsmiths, and workers participated, closing their shops in solidarity. Protesters expressed serious concern over the revised tax structure, which includes a 2% luxury tax and a 13% tax on gemstones and precious stones. According to industry representatives, these measures threaten the survival of Nepal’s gold and silver market.
“This tax will devastate us,” said one trader. “We are already struggling with international market fluctuations, smuggling issues, and weak demand. Now the government has imposed an additional burden.”
Industry Warns of Broader Impact on Employment and Handicrafts
Traders are urging the government to review and revise the current tax policy. They warn that such abrupt taxation could harm domestic production, employment, and the traditional handicraft industry.
Although the government aims to boost revenue through these measures, traders argue that their businesses face an existential crisis—leaving them unable to meet tax obligations. Many are now closely watching for the government’s response in the coming days.
