Call to change taxation policy

Impractical taxation policy for gold traders has decreased the gold transaction volume, blamed the traders.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association of Nepal (NEGOSIDA) said that the government taxation policy is not practical for the traders.

"According to the policy, government has imposed tax on more than 15 per cent of profit, which is not practical for gold and silver traders," said Shakya.
According to him, in raw gold total profit a trader gets is 0.001 per cent while incase of ornaments the profit is only 0.5 per cent to two per cent which is quite minimum.

"During the transaction of one kg of gold we have to invest about Rs 2.7 million and the profit earned from it ranges from Rs 4,000 to Rs 5,000 on an average and rarely its upto Rs 8,000," Shakya said adding that government should revise the taxation policy for the gold and silver traders.

At present, traders need PAN number to buy gold from the banks but most of the traders do not have transactions record as they are suffering from low N volume of transactions.
e "The traders are afraid of s the ineffective taxation system d that is neither encouraging nor effective for the gold traders," he added. "It has also decreased the volume of transaction and has increased black marketing."