Delhi to cut VAT on bullion

Desperate to woo back bullion trade, which has shifted to low tax-regime states such as Gujarat and Rajasthan, the Delhi government is firm on cutting value added tax (VAT) rates on precious metals to 0.25 per cent if the VAT panel fails to make other states raise tax rates to one per cent.

"This time, we will not wait beyond August 24 for VAT panel to take a decision in this regard. We have lost almost all of our trade in bullion to Rajasthan and Gujarat because of lower tax in these two states," said Delhi finance minister A K Walia.

The state will lower VAT to 0.25 per cent from one per cent in line with sales tax in Gujarat and Rajasthan in case no agreement is reached in the empowered committee meeting, he said.