Jewelry Stores Go Dark in Kathmandu Over Revised Tax Rules

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%.