Gold and jewelry traders in Kathmandu have been upset over the taxation policy of the government and have been demanding the withdrawal of a 2 percent luxury tax on gold and a 13 percent VAT on diamonds. According to them, gold is not a luxury but a cultural requirement in Nepal, particularly in weddings and festivals. The traders want the tax policies to be clearer and consumer-friendly, and they are irked by the fact that the existing system is damaging the businesses as well as the buyers.
Jewelry traders demand an end to unfair luxury tax.
