Page 14 - Bullion World Volume 02 Issue 08 September 2022

Bullion World | Volume 2 | Issue 09 | September 2022

Excerpts of Memorandum submitted to

Govt. of India by AGRM on Reviving GMS

To people are importing gold“
Smt. Nirmala Sitharaman
Hon Minister for Finance However the ground realty is that
Govt of india the consumption and demand for
gold in india is highly inelastic,
Sub: suggestions to reduce annual vis a vis import duty, gold price
import of 750 tonnes of gold and CAD or supply side constraints – the
country has been importing
Ref: our earlier letters on around 700-800 tonnes of gold for
policy tweekings to make GMS domestic consumption for the past
operational, to collect domestic gold 2 decades and this steady demand
deposits and affinity for gold jewellery is
arising from religious, cultural,
Respected madam social and economical factors,
We appreciate and respect your irrespective of gold prices, which
Mr James Jose concern in the words -“India does fluctuate 10% intra year.
Past Secretary, Association of not produce much gold. In fact the
Gold Refineries and Mints production is almost zilch, so you An increase in import duty per se,

are importing by paying foreign need not bring down the demand
exchange. So, you want to see for gold, as illustrated from past
whether you can at least try to experience
discourage the extend to which

Gold imported in tonnes and import duty structure of the past 10 years – from 2011 to 2021
No Period Import duty Yearly import in tonnes Gold Import for Total import
structure for gold For domestic consum export purpose tonnes / annum
Notional duty of 767 tonnes
1 2011 238 tonnes 1005 tonnes
Rs.300 for 10 gms gold seized Rs.17crores
2012
2 17.1 .2012 2% ad velorum 690 tonnes 214 tonnes 904 tonnes
28.2.2012 Duty hiked to 4%
2013
3 21.1.2013 duty hiked to 6% 604 tonnes 136 tonnes 740 tonnes
13.8.2013 duty hiked to 10%
4 2014 Duty at 10% 569 tonnes 187 tonnes 756 tonnes
5 2015 Duty at 10% 743 tonnes 196 tonnes 939 tonnes
350 tonnes.
6 2016 174 tonnes 524 tonnes
Duty at 10% Gold seized 858 crores
7 2017 Duty at 10% 642 tonnes 225 tonnes 867 tonnes
8 2018 Duty at 10% 528 tonnes 236 tonnes 767 tonnes
9 2019 Duty hiked to12.5% 464 tonnes 245 tonnes 709 tonnes
283 tonnes. 377 tonnes
10 2020 duty at 12.5% 94 tonnes
Covid pandemic Covid lockdown
11 2021 duty at 12.5% 832 tonnes 152 tonnes 984 tonnes
Duty @12.5 % 232 tonnes
April &May 264 tonnes akshya
12 Festival of Akshaya Highest bimonthly 32 tonnes
2022 thruthiya festival
thruthiya Volume
Import duty + cess Low demand July
13 5 july 2022 Aimed to reduce imports
hiked to 15% High demand Aug

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