Kathmandu – Gold and silver traders have suspended their protest after a six-point agreement was reached between the government and Gold and Silver Traders Federation.

The Nepal Gold and Silver Traders Federation has stated that shops will open regularly from Friday as the protest programs have been postponed.

The government had made a provision for a two percent luxury tax on gold transactions and a 13 percent VAT on diamond jewelry through the budget for the fiscal year 2082/83. The traders had been protesting for a month, demanding a refund, saying that the tax and VAT would affect both consumers and traders.

In a meeting held at the Ministry of Finance on Thursday, it was agreed to form a task force to address the demands of the traders and to recommend a review after conducting the necessary study regarding gold and jewelry, which are included in the definition of luxury.

Dharmasundar Bajracharya, second vice-president of the Federation of Nepal Gold and Silver Dealers, said that there was also an agreement that the tax and VAT increased through the budget would not be implemented until the task force studies and submits its report.

Similarly, the federation has stated that there has been an agreement on making clear arrangements regarding the level seen in the sale and distribution of gold and silver, importing gold from nearby trading centers so that local gold, silver and gemstones and jewelry can be easily accessed, and effectively implementing the Gold Import and Sale and Distribution Procedure, 2068 BS so that gold is available from commercial banks, and amending it as needed.

According to the federation, it has also been agreed that the secretariat of the task force, which will solve the problems of entrepreneurs and study tax and VAT issues, will be located in the Revenue Management Division of the Ministry of Finance.

The MoU was signed by Uttar Kumar Khatri, Joint Secretary at the Ministry of Finance, Bipin Acharya, Joint Secretary at the Ministry of Industry, Commerce and Supplies, Madan Dahal, Director General of the Department of Inland Revenue, Mahesh Bhattarai, Director General of the Department of Customs, Rajendra Bhattarai, Director of Nepal Rastra Bank, Arjun Rasaili, President of the Federation of Nepal Gold and Silver Dealers, and Kisan Sunar, President of the Federation of Nepal Gold, Silver, Gems and Jewellery.