Shahi: Gold tax hike won’t remove Nepal from grey list

KATHMANDU: Rastriya Prajatantra Party (RPP) Chief Whip Gyanendra Shahi has strongly criticized the government’s move to increase tax rates on gold, arguing that such a step will not help Nepal exit the Financial Action Task Force (FATF) grey list.

Speaking at the parliamentary Finance Committee meeting on Monday, Shahi said that government secretaries falsely claimed that raising the gold rate would contribute to Nepal’s removal from the grey list.

He warned against spreading such misinformation.

The committee was holding internal discussions on a proposal to amend the Bank and Financial Institutions Act (BAFIA) 2073 and a petition submitted by the Nepal Gold and Silver Dealers’ Association regarding new tax provisions on gold, silver, and jewelry through the Finance Bill.

Shahi alleged that the proposed bill seemed to encourage the import of gold from India instead of supporting local businesses. “This bill sends the message: ‘Buy gold from India and shut down Nepal’s gold businesses.’ It looks like it was crafted in favor of Indian interests,” he said.

He further emphasized, “If you want to know how to get off the grey list, just Google it. It’s about anti-money laundering, not raising tax rates. Gold is already under the tax net—what we need is to bring untaxed sectors under regulation, not punish those already complying.”

Calling the gold rate hike an anti-consumer move, Shahi said it would hurt end consumers and destroy the livelihoods of nearly one million families involved in the gold industry. “Raising tax rates doesn’t help the country. It helps foreign businesses and harms Nepali families,” he concluded.