Kathmandu: The Federation of Nepal Gold Silver Gem and Jewelry Associations has urged the government to review its decision to impose Value Added Tax (VAT) on diamonds and gems, and a luxury tax on gold. The Federation voiced its concerns at a news conference, expressing fears that these taxes could adversely affect the industry, potentially leading some businesses to shut down.
According to National News Agency Nepal, the government has announced plans to impose VAT on diamonds and precious stones, along with a two percent luxury tax on gold items. Federation Chair Sumanman Tamrakar highlighted the potential repercussions of these new tax provisions, stating that they could impact 25,000 businesspeople with investments totaling Rs 350 billion. Additionally, the livelihoods of craftsmen and their dependents could also be threatened by these tax changes.
The Federation has emphasized that the jewelry sector contributes approximately Rs 20 billion annually to revenue collection, underscoring the significance of the industry to the national economy.