Gold and silver traders protest tax hike, warn of escalated agitation

Dhangadhi: Gold and silver traders across Nepal have launched a protest against the government's recent tax hike on gold, announced in the fiscal year 2082/083 budget.

According to Yadu Sunar, President of the Gold and Silver Traders Association, Kailali, the increased tax will likely encourage gold smuggling and harm legitimate businesses. The traders are demanding that the government immediately withdraw the tax increase.

At a press conference held in Dhangadhi, traders expressed strong dissatisfaction with the new tax system introduced for the gold and silver sector. As a form of protest, they wore black armbands on Wednesday. President Sunar announced that traders would hold a peaceful rally on Thursday, marching from the Dhangadhi intersection to the District Administration Office, Kailali, while holding their shop keys.

The association is calling for the immediate removal of the 13 percent VAT and the implementation of simplified tax policies. Traders also urged the government to retain the previous tax structure and withdraw the 5 percent TDS imposed on exported gold and silver.

They pointed out that due to the return system used in the trade of gold, silver, and diamond-studded jewelry, the selling price often differs from the purchase price, which may cause financial loss under the current tax policy. They are calling for a reconsideration of this aspect.

Traders also warned that the significant price difference between Nepali and Indian markets could lead to an increase in black marketing and illegal imports. They have cautioned that if their peaceful demands are not addressed, they will be compelled to intensify their protest.