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India plans to cut gold import duty to arrest smuggling: Govt officials

The effective duty on gold is currently 18.45%, which includes 12.5% import duty, 2.5% agriculture infrastructure development cess and other taxes

Topics
Import duty | import duty on gold | Gold import duty

Reuters  |  NEW DELHI/MUMBAI 



Gold
Photo: Bloomberg

By Aftab Ahmed and Rajendra Jadhav

NEW DELHI/MUMBAI (Reuters) - India plans to slash the on gold because higher taxes have made it more profitable for smugglers, who can offer hefty discounts and denting the market share of banks and refiners, government and industry officials told Reuters. The duty cut by the world's second-biggest consumer could lift retail sales by making gold cheaper ahead of peak demand season and support global prices. It could also revive operations of local gold refineries, which nearly suspended refining for the past two months as they could not compete with grey market operators. "The government is considering bringing the effective gold rate to below 12%. The proposal is being discussed. We will take a final call soon," a government official, who did not wish to be identified, said. The effective duty on gold is currently 18.45%, which includes 12.5% import duty, 2.5% agriculture infrastructure development cess and other taxes.

 

(Reporting by Rajendra Jadhav and Aftab Ahmed; Additional reporting by Shivangi Acharya; Editing by Louise Heavens)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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First Published: Mon, January 23 2023. 16:12 IST

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