Import duty has now been increased to 12.5 per cent.
The government has decided to increase the import duty on gold by 5 percent. The jewelery industry said on this decision of the government that this would again accelerate the gold smuggling. India is the second largest gold importer in the world. In such a situation, it is increasing the current account deficit.
government has recently import duty on gold ,Import duty on Gold) decided to increase. Duty on gold imports has been increased by 5 per cent to 12.5 per cent. Due to this there will be a jump in the price of gold and jewelery in India. It is believed that with this decision the price of gold (gold price today) will increase by Rs 1500-2000 per 10 grams. India is the second largest consumer of gold in the world. Regarding the decision of the government, jewelery and industry experts said that this would encourage smuggling. He urged the government to review the duty rate on gold. Rising gold imports and current account deficit (Current Account DeficitTo curb this, the Union Finance Ministry has increased the import duty on the yellow metal. This decision is effective from June 30. Explain that Agriculture Infrastructure Development Cess of 2.5% is levied separately on gold imports.
All India Gem and Jewelery Domestic Council (GJC) President Ashish Pethe said, “The sudden hike in gold import duty has taken us by surprise. We understand the government’s position with respect to the rupee against the Indian dollar. But this hike will affect the entire industry and may encourage smuggling. He said that GJC will hold talks with the government to resolve the situation in favor of the domestic industry.
Imports put pressure on the rupee
Somasundaram PR, Regional CEO (India), World Gold Council, said that the demand for gold in India is mostly met through imports, due to which the depreciation of the Indian rupee at times adds to the problem. He said the rupee’s exchange rate has hit a record low earlier this week amid high inflation and rising trade imbalance. He said that the aim of increasing the import duty on gold is to reduce the import of gold and reduce the macroeconomic pressure on the rupee. Somasundaram said, however, that the overall tax on gold has now increased from 14 per cent to 18.45 per cent and if the move is not strategic or temporary, it will have a long-term adverse impact on the gold market and will lead to black marketing.
Import duty was reduced only to reduce smuggling
Ahmed MP, chairman of Malabar Gold and Diamonds, said that the import duty on gold was reduced in recent times to curb tax evasion and smuggling. “But the latest hike in import duty will again encourage smuggling,” he said. We urge the government to review the import duty hike on gold.
Will not have much impact on the end consumer
Saurabh Gadgil, chairman and managing director, PNG Jewellers, said, “At a time when the industry was pushing for reduction of duty on gold, the increase in duty on import of the yellow metal by five per cent is astonishing. He said that although the end consumers will not be affected much by this hike, but business may be affected.
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