Commerce ministry urges the finance ministry to reduce import duty on gold to 2%
The Dollar Business Bureau The Commerce and Industry ministry has urged the Finance ministry to reduce the import duty on gold to 2% from 10%, to encourage the growth of Indian jewellery in the international market. This was revealed to the media by Manoj Dwivedi, Joint Secretary, Commerce ministry. India’s reducing trade deficit will also make it easy for the government to lower its import duty on bullion Dwivedi added. And with the reduction in import duty, gold’s rates would become cheaper, boosting demand thereby supporting global prices. It would also help keep a check on gold smuggling which many predict could increase after a hike in sales tax of gold jewellery beginning July 1. Dwivedi justified that since the current account deficit (CAD) ...
ASSOCHAM asks FM to raise CVD on gold dore to 9%
The Dollar Business Bureau Associated Chambers of Commerce and Industry of India (ASSOCHAM) has advised the Union government to increase the countervailing duty (CVD) on gold dore from 8.75% to 9% and bring down the excise duty levied on refined gold bars from 9.5% to 9.25%. These measures were suggested to bring a balance between refineries in excise-paying areas and excise exempt areas, as they were almost equally levied in both the segments. On an average, India imports over 800 tonnes of gold every year. However, domestic gold refining has improved by in the past three years and grew from 5% in FY2013 to 25% in FY2016. In a letter that was addressed to Finance Minister Arun Jaitley from ASSOCHAM, it stated, ...
GoI not to impose fresh import duty on gold
The Dollar Business Bureau Gold is India’s second highest import item in terms of values, and the spike in its imports had widened the current account deficit in 2013, sparking the country’s worst currency turmoil since a balance of payment crisis in 1991. India and China are the world’s largest buyers of gold. But after the massive selling in the Shanghai gold exchange on Monday, the gold prices have seen a downward spiral in the recent past and stooped to a five-year low. Although the traders hoped that the metal would perk up in India or elsewhere in Asia. A fresh round of the purchase of gold is expected from the households, as it is still considered the best and safe investment ...
GJF recommends gold import duty cuts, exclusion of jewellery from FTAs
The Dollar Business Bureau India exported gold jewellery worth around $8.1 billion in FY2013-14, down 38% from $13 billion in FY2012-13 The All India Gems and Jewellery Trade Federation (GJF), a trade body for the promotion and growth of trade in gems and jewellery across India, has urged the government to develop a comprehensive gold policy to make India a global jewellery hub as a part of Prime Minister Narendra Modi’s “Make in India” initiative. Among its recommendations for Union Budget 2015-16, GJF said that considering that crude oil prices are expected to be low, the government should reduce the import duty on gold from 10% to around 2% to strengthen the domestic gold industry and prevent smuggling of gold ...
