Jewelers in Kathmandu shuttered their shops on Thursday, June 12, in protest against the government's new tax policy. 

The May 29 budget introduced a 2% luxury tax on all jewelry—regardless of value—and a 13% VAT on diamond- and gemstone-studded ornaments. 

Read: Jewelry Traders Push Back Against New Tax Policy

Previously, a 10% luxury tax applied only to jewelry priced above Rs 1 million.

Protesters are demanding a repeal of the new taxes, a fixed 6% customs duty on gold, and clearer policies for the gold and silver trade.

In late November 2024, the government slashed the customs duty on gold import from 20% to 10%.