Diversion of bullion trade to select centres of the country could be a thing of the past with states deciding to impose a uniform sales tax rate of 1 per cent on gold from tomorrow.
These include major gold trading centres, like Gujarat, Rajasthan, Delhi, Haryana, Uttar Pradesh, Tamil Nadu and Maharashtra, which were hitherto levying sales tax below the 1 per cent floor rate.
The decision was reached in the meeting of the empowered committee of state finance ministers on January 29, officials involved in the exercise said.
The move to levy a uniform sales tax would also stop the current diversion of trade across states because of the lower tax imposed by several of them.
