Gold jewellery shops in Kerala down their shutters

Kochi, Jun 26 (UNI) Business in the ever-bustling gold jewellery shops in Kerala came to a halt today as the traders downed their shutters in a one-day token strike to protest against the proposed three per cent hike in sales tax in the state budget.

According to reports received here, almost all the gold jewellery shops across the state were closed today, Mr Babu Alappat, the Ernakulam district president of the Gold and Silver Merchants Association, said.

''The response to the strike call was total. If the government does not accept our demand for a roll back in the sales tax hike, we may consider going on an indefinite strike,'' he added.

The state budget, presented last week, has proposed a hike in sales tax on gold from one per cent to four per cent.

Kerala has one of the higest consumption rates of gold in the country, estimated to be at least 100 tonnes last year. The total national consumption of the glittering metal was estimated at 900 tonnes last year.

Buyoyed by aggressive marketing campaigns by gold jewellers, it has become a fad in Kerala for brides to be decked up in gold from top to toe.

Gold traders apprehend that the sales tax hike, coming close on the heels of higher bullion prices, will dampen the market here and force the people to go to neighbouring states to make their purchases.

UNI ARC VS1827