NCC Urges Budget Tax Review: Trade Body Challenges New Gold & Diamond Tax
29th June 2025, Kathmandu
The Nepal Chamber of Commerce (NCC) has formally requested that Finance Minister Bishnu Prasad Paudel reconsider the recently introduced luxury tax and value-added tax (VAT) policies in the Fiscal Year 2082/83 Budget.
NCC Urges Budget Tax Review
The Chamber raised concerns regarding the 2 percent luxury tax on gold and the 13 percent VAT on diamonds and other precious stones, highlighting their impracticality and potential negative impact on both consumers and the jewelry industry in Nepal.
A delegation led by NCC President Kamlesh Kumar Agrawal met with Finance Minister Paudel at Singha Durbar to discuss the critical implications of these tax measures on the gold, silver, and precious stones market. The Chamber warned that the new tax regime could make it extremely difficult for businesses engaged in the gold and gemstone jewelry trade to operate sustainably, potentially threatening the livelihoods of hundreds of thousands of workers employed in these sectors across Nepal.
President Agrawal emphasized that the current economic environment demands a balanced tax approach that supports the jewelry and precious metals industry, which plays a significant role in Nepal’s economy. He stressed that the proposed luxury tax and VAT rates could increase the cost burden on consumers and reduce competitiveness in the market.
In response, Finance Minister Paudel assured the NCC delegation that he would seriously consider their recommendations. He pledged to engage in consultations with key stakeholders, including industry experts, business leaders, and tax authorities, to explore practical solutions aimed at revising the luxury tax and VAT frameworks to better align with Nepal’s economic realities.
This proactive government approach seeks to protect the interests of the private sector, ensure the sustainability of the jewelry and gemstone industry, and preserve employment in a sector vital to Nepal’s economic growth and development.
The Nepal Chamber of Commerce continues to advocate for tax reforms that encourage business growth, economic stability, and job creation while ensuring fair taxation policies that do not hamper the country’s key industries.
About NCC
The Nepal Chamber of Commerce (NCC) is a key business group. It started in 1951. The NCC protects and promotes business in Nepal. It has over 1,600 members and 8,000 affiliated firms.
The NCC’s goal is to make Nepal’s trade sector competitive. It aims to strengthen Nepalese trade in the global market.
The organization helps grow the national economy. It builds strong relationships between traders and industries. It also partners with global business institutions.
The NCC advocates for better government policies. It organizes expos to promote local products. It collaborates with international groups to expand markets. Finally, it supports its members with services and guidance.
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