Kathmandu. Kathmandu: Nepal Gems and Jewellery Association has objected to the removal of diamonds and precious stones from the list of items that do not charge VAT and imposition of luxury tax on gold. Addressing a press conference in Kathmandu on Monday, the Association said that some of the provisions made through the economic ordinance during the budget for the fiscal year 2082/83 brought by the government have destroyed the jewellery traders.
According to the association, the gold, diamond and precious stone businesses, which have invested billions of rupees in thousands of businessmen, created millions of employment opportunities and contributed billions of rupees to the revenue, are on the verge of collapse.
According to the association, the government has removed diamonds and precious stones from the list of items exempted from vat without considering the possible consequences. The association has objected to the announcement of luxury tax on gold and gold ornaments.
Speaking at a press conference, Association President Suman Man Tamrakar said the government’s move has pushed the entire business of gold and silver, diamonds and jewellery towards an uncertain future at a time when businessmen have been demanding the withdrawal of the 2 per cent luxury tax imposed since last year on the sale of jewellery above Rs 1 million.
According to the Data of the Department of Customs, the trade of diamonds and precious stones is increasing gradually. According to the Association, diamonds worth Rs 2.97 billion were imported in the fiscal year 2079/80, while more than Rs 3.75 billion was imported till mid-May of the current fiscal year 2081/82.
The association warns that attempts to curb the gradually expanding business will be detrimental to the government in the long run.
The association has demanded that diamonds and precious stones should be re-included in the list of items exempted from VAT, the provision of luxury tax on gold should be abolished, clear policies and guidelines related to the trade of gold and silver, diamond and precious stones should be issued immediately and duty drawback facilities should also be provided to jewelry businessmen.
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