Gulf NRI body for duty-free gold allowance based on quantity

An UAE-based NRI welfare organisation has asked the Indian government to consider making duty-free gold jewellery allowance based on quantity and not value.
The Pravasi Bandhu Welfare Trust has requested an increase in quantity of duty-free gold allowed by Indian expatriates to at least 100 grams for male passengers and 200 grams for female passengers.
While it acknowledged the government's move to hike the luggage allowance of gold jewellery from Rs 10,000 to Rs 50,000 for male passengers and from Rs 20,000 to Rs 100,000 for the female passengers, the NRI body said the current increase in value of gold allowance limits the quantity.

"When the law was implemented forty years back a male passenger could�bring�250 grams of jewellery worth Rs 10,000� and a female passenger could carry 500 grams of gold of jewellery worth Rs 20,000 as per the then prevailing gold price," the organisation's petition said.
After the current hike in value of gold allowance, one male passenger can carry only 17 grams and a female passenger only 34 grams of gold jewellery at the current gold price and hence it is not fair to the expatriates, it added.
"According to the more than 40 years old luggage rule, a passenger who stayed abroad more than one year could bring Alcoholic liquors or Wines up to 2 litres and 200 Cigarettes or 50 Cigars or 250 grams tobacco duty-free. All of them are specified in terms of quantity not value," K V Shamsudheen, Chairman of Pravasi Bandhu Welfare Trust said in the representation.

The representation is addressed to Finance Minister P Chidambaram and UPA Chairperson Sonia Gandhi.

While proposing the hike in duty-free limit of gold, Chidambaram in his Budget speech last month had said baggage rules permitting eligible passengers to bring jewellery were last amended in 1991 and gold prices had risen since then.
"Generally as custom, most Indian men wear a wedding ring, a bracelet and a chain which together may weigh 100 grams, where as a lady wears a few bangles, a pair of ear rings and a chain with mangalsutra. Thus, the ornaments normally worn by any Indian woman would add up to approximately 200 grams," the representation said.

The representation has also been sent to leaders of opposition, Minister of Overseas Indian Affairs Vayalar Ravi, among others.