On Monday, the local market saw 10-gram and one-tola gold prices reach record highs of Rs127,143 and Rs148,300, a rise of Rs1,714 and Rs2,000, respectively.
However, according to a statement from the All-Sindh Saraf Jewelers Association (ASSJA), the price per ounce rose by only $2. The rupee’s historic decline against the dollar, which traded at Rs229.88 in the interbank market on Monday, forced an increase in domestic rates.
On January 1, 2022, the prices of 24-karat 10-gram and one-tola gold based on the world bullion rate of $1,830 per ounce were Rs108,196 and Rs126,200, respectively.
Following the government’s decision to levy a set income and sales tax of Rs40,000 on shopkeepers with shops less than 300 square feet, regardless of their power use, location, or company size, gold traders have vowed to shut down their operations and hold a sit-in.
According to Haji Haroon Rasheed Chand, ASSJA’s president, gold jewelers are worried about the set tax.
According to him, the general retailer threshold of 1,000 square feet of shop space must be maintained. Fixed tariffs for all general retailers, other than those belonging to Tier-1, would be Rs3,000 to Rs10,000 based on the amount of electricity consumed.
However, jewelers with more than 300 square feet of store space have been shifted to Tier-1 status, whereas general traders with less than 1,000 square feet of shop space are not Tier-1 members, according to Mr. Chand.
This is basically the bone of contention between the jewelers and the government.
