KARACHI: Prices of 10-gram and one-tola gold reached an all-time high of Rs127,143 and Rs148,300 in the local market on Monday, showing a jump of Rs1,714 and Rs2,000 respectively.

Rates issued by the All Sindh Saraf Jewellers Association (ASSJA) mentioned a rise of only $2 per ounce to $1,730. But the domestic rates have been adjusted upwards owing to a record fall in the rupee’s value against the dollar, which traded at Rs229.88 in the interbank market on Monday.

On January 1, 2022, prices of 24-karat 10-gram and one-tola gold were Rs108,196 and Rs126,200, respectively, based on the world bullion rate of $1,830 per ounce. One dollar at the time was equal to Rs177.

Gold traders have threatened to close down their businesses and stage a sit-in following the government’s decision to impose a fixed income and sales tax of Rs40,000 on those retailers that have shops of 300 square feet or less irrespective of their electricity consumption, location and business size.

ASSJA President Haji Haroon Rasheed Chand said the fixed tax has created uncertainty among gold jewellers.

He said the threshold of 1,000 square feet of shop space has been maintained for general retailers. All general retailers, other than those belonging to Tier-1, will pay reduced fixed charges at Rs3,000-Rs10,000 as per their electricity consumption.

Mr Chand said shifting jewellers having shop space of more than 300 square feet to Tier-1 category is highly discriminatory as general traders below 1,000 square feet of shop space are not in Tier-1 category.

Published in Dawn, July 26th, 2022