Nepal gold and jewelry industries demand simplification of directives

February 8, 2025, Kathmandu

A delegation led by Kisan Sunar, President of the Federation of Nepal Gold, Silver, Gems, and Jewelry Associations, has submitted recommendations to Ram Prasad Acharya, Director General of the Inland Revenue Department, requesting the simplification of certain provisions in the directive titled "Directives for Institutions Engaged in the Trade of Precious Metals or Goods."

The federation emphasized that the directive should only be implemented after completing all informational and physical preparations necessary for its execution.

When the directive was first issued in 2077 B.S. (2020 A.D.), businesses were required to submit reports only for wholesale transactions. However, a recent amendment has extended this requirement to retail businesses as well. The federation has urged that additional time be granted for proper preparation and groundwork before enforcing the new provision.

The federation also stressed that certain regulatory responsibilities, which should be handled by regulatory bodies, have been unfairly shifted to business owners. It insisted that such responsibilities should remain with the regulatory authorities.

Additionally, the federation has made the following demands:

1. Increase the reporting threshold from NPR 1 million to at least NPR 5 million for transactions requiring mandatory reporting.
2. Abolish the luxury tax, as repeated purchase, return, and exchange of the same item could place an unnecessary financial burden on consumers.

The delegation included the federation's federal executive committee members, namely:

• Sudhir Agrawal, Second Vice President
• Prem Bahadur Bishwakarma, Third Vice President
• Nir Bahadur Bishwakarma, General Secretary
• Prithvi Bishwakarma, Secretary
• Along with other business representatives.