Kathmandu: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has defended the government’s decision to implement a luxury tax on gold and silver. The move aims to remove Nepal from the grey list of the Financial Action Taskforce (FTF).
According to National News Agency Nepal, during his responses to questions about the Appropriation Bill -2082 BS in the National Assembly, Finance Minister Paudel highlighted the necessity of removing Nepal from the FTF grey list and maintaining transparency in gold and silver transactions. He explained that currently, a two percent luxury tax is applied to gold transactions exceeding Rs one million, but this threshold will be removed in the budget for the fiscal year 2025-26.
The Finance Minister acknowledged ongoing discussions with gold and silver dealers who have shown dissatisfaction with the luxury tax announcement, expressing hope for a meaningful resolution soon. Last month, he unveiled a budget totaling Rs. 1.964 trillion, claiming it is implementable.
He stated that the budget provides a realistic analysis of internal revenue management, loans, and grants. “The budget pursues a policy of spending debt in capital building purpose,” he added, emphasizing the importance of keeping loans within limits and focusing expenditures on production and productivity growth.
Minister Paudel assured that the budget’s priorities are rational and denied any power play or influence during its drafting. Key highlights include accelerating projects of national pride, fostering civic involvement in production, employment, social security, and promoting entrepreneurship.
He noted the significant participation of lawmakers in the budget’s formulation. Subsequently, the National Assembly meeting approved a proposal by Finance Minister Paudel for the Upper House to consider the Finance Bill, 2082 and the Bill designed to raise National Debt, 2082.