FENEGOSIDA urges govt to immediately revoke 2 percent luxury tax imposed on gold and silver items

Published On: June 10, 2023 01:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 10: The Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) has demanded the government to immediately revoke the 2 percent luxury tax imposed on gold and silver items.

A joint meeting of all the three federations involved in the gold and silver business have demanded the immediate withdrawal of the tax announcement. FENEGOSIDA, Federation of Nepal Gold Silver Gem and Jewellery Association Nepal and Federation of Handicraft Associations of Nepal have decided that this decision of the government is against the interest of gold and silver dealers.

The government has also objected to the adoption of a discriminatory policy that men coming from abroad are allowed to bring 25 grams and women 50 grams of gold jewelry and that jewelry should contain chemicals. The federation has also drawn the attention of the government to the negative impact on the Nepalese gold and silver business due to the unnatural increase in customs rates. They have said that they will oppose the state's policy of imposing taxes on businessmen and common consumers under various pretexts.

The federation has protested against the 50 percent increase in customs duty on gold and silver in the budget. They have demanded a review the customs rate of gold and silver and implement an open import policy in accordance with the provisions of the World Trade Organization (WTO). Speaking at the press conference, Manik Ratna Shakya, president of FENEGOSIDA, said that there are opposite policies in the budget. He opposed the luxury tax saying that it was not levied in the past but in the current budget.

The businessmen have demanded to cancel the 2 percent luxury tax imposed on cash-like assets like gold and silver jewelry, to review and open the import of gold and silver if the customs rate is increased by 50 percent, and to make arrangements to allow the jewelry taken abroad from Nepal to be brought back without any time limit. The Federation has alleged that they are only trying to keep the gold and silver jewelery under the control of the monopoly market through the quota system for the past 13 years. They have demanded to stop the control-oriented system.


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