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Gold Import Duty: Gold will be cheaper soon! Government may reduce import duty on gold in the budget

highlights

Between July-September, India’s gold imports fell by 23% compared to the same period a year ago.
The Finance Ministry has been asked to reduce its tariff from 12.5 percent to 10 percent.
The bullion industry is demanding reduction of the hike made in July and reduction of GST from 3% to 1.25%.

New Delhi. India’s trade ministry has suggested reduction in gold import taxes to curb illegal shipment smuggling. According to data from the World Gold Council, India’s gold imports fell by 23% between July-September as compared to the same period a year ago after the tariff hike.

Let us tell you that India is the second largest consumer of precious metal gold in the world and most of it comes from abroad. Therefore, the Ministry of Finance has been asked to consider reducing its tariff from 12.5 percent to 10 percent. However, the spokesperson of the Finance Ministry refused to comment on this. At the same time, the representative of the Ministry of Commerce also did not respond to the email sent.

read this also – Gold Price Today: Fall in the price of gold and silver, gold came below 54000, silver also became cheaper

needed to control the trade deficit

This matter has also created a dilemma for Finance Minister Nirmala Sitharaman. Because imports need to be kept low to control the widening trade deficit, but due to smuggling, the government does not get the much needed revenue. In July, the administration had increased the tariff on the import of gold, after which there was a decline in its purchase in the country.

There may be an announcement to reduce the tariff in the budget

According to the All India Gems and Jewelery Domestic Council, the bullion industry is demanding a rollback of the tax hike made in July and a reduction in the Goods and Services Tax (GST) from the current 3 per cent to 1.25 per cent. On the condition of not revealing the identity, the people associated with this matter told that till now the matter is going on. He said whether this recommendation will be accepted or not is not yet clear. This decision can be announced on or before the presentation of the budget at the beginning of next year.

read this also – Gold Price Today: Fall in the price of gold and silver, gold came below 54000, silver also became cheaper

Import tax should be 4 to 6 percent

Ashish Pethe, president of the Mumbai trade group, says that “high import tax is creating problems for the domestic industry as it increases unofficial goods and benefits illegal trade. We suggest that the import duty should be in the range of 4 per cent to 6 per cent. Due to this, the government will also get sufficient revenue and illegal trade can also be curbed.

Tags: Gold

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