Bullion traders fuming

NAGPUR, DEC 26: Nagpur bullion traders launched a three-day bandh from Friday to protest the hike in octroi on gold and silver ornaments.The Nagpur Sarafa Association said the bandh is called to protest the Nagpur Municipal Corporation8217;s decision to discard the present practice of collecting octroi on gold and silver on the basis of weight and introduce the ad valorem system. It amounts to an 8 to 10 times increase in octroi, it claimed.

It said that it readily accepted increase of octroi from Rs 5 to Rs 10 per ten grams of gold or one kg silver. After the introduction of the system, the octroi rates would go up to Rs 75 per kg of silver and Rs 45 per 10 grams of gold. Opposing the steep hike, the group expressed the fear that the sarafa business would be badly hit and that the businesses would shift to other places with cheaper rates .