Kathmandu: The Federation of Nepal Gold Silver Gem and Jewelry Associations has urged the government to review the decision to impose Value Added Tax (VAT) on diamond and gems, and luxury tax on gold.
At a news conference today, the Federation feared that such taxes could impact the business too, while some of the businesses could even be forced to shut down.
The government has announced to impose VAT on diamond and precious stones, and two percent luxury tax on gold items.
Federation Chair Sumanman Tamrakar argued that the new provision of VAT and tax could not only impact 25,000 businesspeople with Rs 350 billion of investment but also the craftsmen and their dependents.
The Federation has claimed that the business contributes some Rs 20 billion in revenue collection annually.