Kerala - Alappuzha   

Gold merchants' plea on compounding fee

Staff Reporter

ALAPPUZHA: P.T. Cherian Palathra, president of the All-Kerala Gold and Silver Merchants' Association, on Friday said that the State Government should implement a separate compounding fee structure for small and medium-scale traders of gold.

He said the 200 per cent compounding fee proposed in the revised budget and hike in sales tax on gold from 1 per cent to 4 per cent would severely hit gold trade in the State.

Mr. Palathra said small and medium gold merchants were finding it difficult to cope with the steep hike in compounding fee.

Tax evasion

He said four per cent tax on gold would result in evasion of tax as public would approach illegal gold merchants.

The registered shops would be forced to close down, he said.

Mr. Palathra said the present situation in gold trade was advantageous to gold smugglers. The price of gold outside the State would be far less and people would purchase gold from the neighbouring States.

It would also encourage smuggling of gold from the Gulf., he said

Mr. Palathra said the thousands of families in the State depended on the industry for their livelihood.

`Review proposals'

He appealed to the Government to review its policy and

incorporate necessary corrections in the tax proposals in the budget.

He said the association would organise an agitation if the Government failed to concede its demands.

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