Udupi jewellers to join stir against VAT on March 25

The bundh is scheduled on March 25.

Speaking to media persons here on Tuesday, President Jaya Acharya informed the jewelry industry is second largest business in the State. However, the State government’s decision is against the interest of gold traders. 

Customers have to pay additional Rs 40 on each gram of gold due to this 2 per cent hike in VAT.

The Central government has announced one per cent VAT on gold across the country and it is two per cent only in Karnataka, he said.

The Central government’s impending proposal to introduce one per cent GST (Goods and Services Tax) on gold in 2012 will be added burden to the traders. Last year, the State government has been ensured an estimated profit of Rs 70 crore from gold industry.

However, at present the profit is expected to end up around Rs 100 crore. Gold trade is the essential fraction of the industrial set ups in as many as 176 taluks of 30 districts in State. Each worker in gold trade will be adversely affected with 2% VAT on gold, he said.

About 10,000 to 20,000 gold merchants and workers from across the State will take part in the protest, he added.