Tax Office Enforces Operating Guidelines for Jewelry Skill Promotion Fee

The Inland Revenue Department has introduced procedural guidelines to administer a 0.5 percent skill promotion levy on retail sales of gold and silver jewelry, implementing Section 14 of the Finance Act 2083. According to department information officer Keshav Raghubanshi, the rules mandate that jewellers collect the fee at the point of sale, record transactions on an accrual basis, and file returns alongside tax deposits by the 25th of every month. Late filings incur daily fines or a minimum penalty of Rs 1,000, while overdue deposits accrue 15 percent annual interest.

Under the framework, customer exchanges of equal weight and value are exempt from the fee, but additional metal weight, making charges, and wastage costs attract the 0.5 percent levy. The directive also requires jewelry artisans to obtain a Permanent Account Number and mandates that individuals selling used ornaments present official identification alongside proof of purchase. Businesses attempting to conceal sales or evade the levy face tax reassessments and a 25 percent surcharge.