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No takers for gold import scheme

Devendra Vyas

Gold importers of Rajasthan are disappointed with the new scheme announced by the state government for gold importers through the green channel by paying a lumpsum amount. The new scheme has come into force from May 3 and will expire on May 15.

According to the scheme, a group of three importing parties paying Rs 35 million each to the state government can import gold through the green channel free of sales tax. It means that the gold importers have to pay Rs 105 million to the state government to avail of the new scheme. According to sources, till date not a single party has availed of the scheme.

"The amount required by the state government is exorbitant," say traders. "Even if we go for the scheme and pay Rs 35 million , the cost works out to around 0.50 per cent, which is equivalent to the sales tax levied in Gujarat and Maharashtra. Then what is the benefit of importing gold through the green channel," ask traders.

"If this scheme fails, a huge amount of gold imports will be diverted to other states," they add. During the last financial year, gold worth Rs 70 billion was imported through the green channel at Jaipur.

There are three green channel operators at Jaipur --the MMTC, the Punjab National Bank and the Corporation Bank.

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