Just the other day the reports came out that Indian government has cut down the rate of gold hallmarking. And now taking a step forward the Gems and Jewelry Export Promotion Council (GJEPC) has insisted the govt. to trim down import duty on gold from the prevailing 10 per cent to two per cent. The council falls under the ministry of commerce. The council has made a written request to the ministries of commerce and finance, where it stated that with duty hike on gold imports, the government has handled to get the current account deficit under control.
Owing to the obligation of 80:20 scheme, the preferred cut back in the total import of gold has been suitably achieved; with 80:20 scheme, 20 per cent of imported gold needs to be provided to the jewelry exporters. That is the reason the GJEPC wants that import duty needs to be rolled back to much lower rate, for instance two per cent, said council’s chairman, Vipul Shah. He also claimed that due to the limitation on gold import, it has taken influence on the export of gems and jewelry, which witnessed a insignificant 2.22 per cent fall to Rs 1,63,943 crore in the first 10 months between April 2013 and January 2014 as against Rs 1,67,670 crore in the subsequent period last year.
However while discussing the post interim Budget last week, Finance Minister P Chidambaram precluded any such prospect any time soon. He had said that the further decision on gold duty reduction will be taken only after reviewing of CAD and how does it affect the economy. Due to the rise in import duty, import through official channel has seen a decline; smuggling of the precious metal to the country has also increased, as the demand of gold among customers is quite high. The 10 per cent duty will no way help in reducing the smuggling. Though if the import duty pushed back, then it is possible in every way that smuggling will see a setback. At the same time, smuggling is ominous to this whole export business and the reputation of the Indian sector as per Responsible Gold and Dodd Frank Act, opined Shah.
If look at global precious metals consultancy estimation, gold import through smuggling in India has seen a huge growth of 200 tonnes in 2013 from 112 tonnes in the previous year. Well, this indeed a proof that gold is very much in trend at the moment and you can enhance your beauty by relishing in the gold designs. Find the best designs at Johareez.com!