Finance Minister Paudel defends luxury tax on gold, silver

Kathmandu, July 2: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has said the decision to implement a luxury tax on gold and silver aims to remove the country from the grey list of the Financial Action Taskforce (FTF).

Kathmandu, July 2: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has said the decision to implement a luxury tax on gold and silver aims to remove the country from the grey list of the Financial Action Taskforce (FTF).     

During his replies to questions raised in course of deliberations on the Appropriation Bill -2082 BS in the National Assembly today, the Finance Minister underlined the need for removing Nepal from the FTF grey list and for maintaining transparency in sale and purchase of gold and silver. "Presently, a two percent luxury tax is levied on gold transactions exceeding Rs one million. However, in the budget for the upcoming fiscal year (2025–26), this threshold has been removed," the Minister said.     

He said discussions are going on with gold and silver dealers who have expressed dissatisfactions with the announcement of luxury tax, expressing his hope for a meaningful conclusion soon.     

The Finance Minister who had unveiled total budget of Rs. 1.964 trillion last month, claimed," It is implementable".     

As he added, the budget presents a realistic analysis of internal revenue management, loan and grants headlines. "The budget pursues a policy of spending debt in capital building purpose."     

"We are aware that the scope of loans should not cross the limit. We focus on the expenditures on production and productivity growth," he added.     

The budget and its priorities are rationale, he said, refuting power play and influence during its drafting. The acceleration of projects of national pride, civic involvement in production, employment and social security and the promotion of the entrepreneurship are among the highlights of the budget, according to him.     

He also claimed of wider participation of lawmakers in the formulation of budget.     

Later, the NA meeting approved a proposal tabled by Finance Minister Paudel seeking consideration of the Upper House over the Finance Bill, 2082 and Bill designed to raise National Debt, 2082 .(RSS)