Jewelers rallied at Kathmandu’s New Road on Sunday, June 8, demanding the immediate repeal of a newly imposed tax on jewelry items.

The demonstration follows the government’s announcement in the May 29 budget of a 2% luxury tax on all jewelry—regardless of value—and a 13% VAT on diamond and precious stone-studded ornaments.

Read: Jewelry Traders Push Back Against New Tax Policy

Traders have strongly opposed the move, warning it will hurt consumer demand, disrupt the market, and further strain an already struggling industry.

Previously, a 10% luxury tax applied only to jewelry priced above Rs 1 million, but the revised policy removes that threshold.