The government has decided to levy the tax at only one level after the jewelers protested that the levy would increase consumer prices.
What you should know
Luxury duty on gold and gold jewelery will now be levied at only one level. The government has decided to levy the tax at only one level after the jewelers protested that the levy would increase consumer prices.
The Ministry of Finance has made this decision by amending the Economic Act 2082. Amending the Economic Act 2082, it has been decided to collect 2 percent luxury tax on jewelery at one level, i.e. from consumers only.
The Ministry of Finance has already published in the gazette on August 2, revising the scope of the tax. Along with its publication in the gazette, the Internal Revenue Department has also made and implemented the Luxury Duty Procedure 2082 on Monday.
Through the 2082/83 budget, it was decided to impose 2 percent luxury tax on gold and gold jewelry and 13 percent value added tax (VAT) on precious stones including diamonds. Businessmen took to the streets to protest against it. He formed a struggle committee and took to the streets saying that the 2 percent luxury tax would increase the price of jewelery according to the level. According to
businessmen, the first level (bank) is. Then there is the second level (producer/Kaligarh). The third level is a jewelry store. They said that when the price increases at different levels, the price of jewelery will be higher. They took to the streets to protest against it. After that, the government formed a task force. According to the report of the working group, it has been decided to levy tax on one level, i.e. jewelery shop, only when it is sold to consumers.
Although the government imposes a 2 percent luxury tax on the gold jewelry purchased by the consumer, this tax is not charged when the consumer returns the gold.
