: The Calicut Bullion Dealers Association has appealed to the State government to take steps for the equalisation of Value Added Tax of gold with the amount now prevailing in other States.
In a memorandum submitted to Minister for Finance K.M. Mani here on Friday, they said the disparity in VAT amount had forced many gold merchants to carry out the trade incurring loss.
According to the leaders of the organisation, the total sales of gold had recently come down by around 40 to 50 per cent owing to the huge disparity in VAT collection. “Many a time, it was the dealers who remited the five per cent VAT as the buyers would not be interested in buying gold with the existing VAT rate,” they said.
Association leaders B. Girirajan and M. Ram Mohan pointed out that registered traders were not even getting the required quantity of gold for the business. “As a result, the parallel trading utilising smuggled gold too was now on the rise causing a huge tax loss to the government,” they said.