Gold traders down shutters to register protest

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

According to reports received here, almost all gold jewellery shops across the state were closed today, Mr Babu Alappat, Ernakulam District President, 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 an indefinite strike,'' he added.

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

In the country, Kerala has one of the highest consumption rate of gold.

While it was 900 tonne in the country last year, the state consumed about 100 tonne last year.

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

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