Gold and Silver Shops to Remain Closed Tomorrow in Chitwan Amid Tax Protest, Business Gathering Announced

Amir Ramdam, Chitwan – All gold and silver shops across Chitwan district will remain closed tomorrow (July 18) in protest against what traders are calling an “impractical tax system.”

The decision comes at the call of the Nepal Gold and Silver Dealers Association, Chitwan, which has also announced a business gathering to be held alongside the closure. Association president Hem Bahadur Bishwakarma confirmed the decision following a meeting held today that included advisory members.

Bishwakarma noted that although the gold and silver traders had suspended their protest after reaching a six-point agreement with the government on July 10 (Asar 26), the movement was never officially called off. “We had only paused the protest, not ended it,” he stated.

According to him, recent circulars from the Inland Revenue Offices instructing local and municipal trade associations to prepare bills including luxury tax have triggered widespread unrest among traders. He accused district-level offices—while the tax task force is still active—of intimidating traders by sending sample bills, effectively undermining the agreed terms and pushing traders toward displacement.

Previously, gold and silver traders in Chitwan had shut down their businesses from June 26 to July 10 (Asar 13 to 26) in protest of a 2% luxury tax on gold ornaments and a 13% VAT on diamonds and precious stones.

Traders now argue that the sudden push for luxury-tax-inclusive billing is a breach of the earlier agreement and a tactic to destabilize small business operators. Tomorrow’s business gathering is intended to send a strong message to the government that tax reforms must be practical and inclusive for sustainable business operations.