Jewellers rallied at Kathmandu’s New Road on Monday, July 7, calling on the government to withdraw the newly imposed taxes on jewellery items.

[ Read: Jewelry Traders Push Back Against New Tax Policy ]

The protest follows the May 29 budget announcement introducing a 2% luxury tax on all jewellery—regardless of value—and a 13% VAT on ornaments studded with diamonds and precious stones.

Traders have strongly opposed the move, warning that it will dampen consumer demand, disrupt the market, and further strain an already struggling industry.

[In Photos:  Jewelry Stores Go Dark in Kathmandu Over Revised Tax Rules ]

Previously, a 10% luxury tax applied only to jewellery priced above Rs 1 million. The revised policy removes that threshold, applying the tax across the board.

Protesters are also demanding a fixed 6% customs duty on gold import and clearer regulations for the gold and silver trade.

In November 2024, the government reduced the customs duty on gold imports from 20% to 10%.

Deputy Prime Minister and Finance Minister Bishnu Paudel has defended the tax policy , stating that the move is intended to make gold transactions more transparent and address concerns raised by the international community.