Gold becomes costlier as Maharashtra Govt imposes surcharge

In a jolt to already struggling gold and diamond industry, the Maharashtra government has decided to levy a surcharge on these items along with others like petrol and diesel. The surcharge on Value Added Tax (VAT) for gold and diamond jewellery is now 1.20 per cent from tonight and will remain in force for the next five months.

Justifying the hike in gold and diamond jewellery, finance minister Mr. Sudhir Mungantiwar elaborated, ‘The hike in petrol, diesel, liquor, cigarette, gold is justifiable as these items do not fall under essential commodity and people of Maharashtra are sensible to bear the cost for distress farmers.’

The finance minister goes on, ‘The government needs Rs 421 crore to pay to farmers for their loss due to unseasonal rain crop loss, Rs 20 crore for repair of their houses, Rs 690 crore for crop insurance, Rs 60 crore for waiving off interest on loans, Rs 117 for restructuring of loans, Rs 1,072 aide for loss of crop and sprout produce farmers and Rs 950 crore for distribution of wheat and rice at Rs 2 and 3 under Food Security bill scheme.’