All that glitters is not sold: Gold industry wants duty reductions in Budget 2024
Thu July 18 2024
Gold trade expects the upcoming budget to introduce multiple measures to boost retail consumption and increase the consumption of jewellery and gold products. The trade has also urged the government to reduce import duties on precious metals, specifically gold, silver, and platinum bars as reduction is essential to curb gold smuggling, which has seen an unprecedented increase.
MP Ahammed, Chairman, Malabar Group said " We urge the government to
reduce import duties on precious metals, specifically gold, silver, and
platinum bars. This reduction is essential to curb gold smuggling, which has
increased exponentially. The duty reduction will also release the duty
blockage, providing more working capital for the industry. Additionally,
introducing a duty drawback on exports will help us leverage the India-UAE
Comprehensive Economic Cooperation Agreement, giving industry players a
competitive edge, boosting exports, and generating employment in the
sector."
"We also recommend allowing globally recognized diamond broking and
trading houses to operate in Special Notified Zones (SNZs), enhancing their
scope. This move will increase our global competitiveness, unlock the untapped
export potential for gold jewellery, and contribute to the growth and
sustainability of the jewellery retail industry. We look forward to positive
steps in this direction in the upcoming budget," the Malabar chief said.
Added Saurabh Gadgil, MD & CEO of PNG Jewellers “We expect this year's
budget to include measures that shall increase disposable income, support
growth for the industry, and propel faster infrastructure development. Given
the fact that a stable government at the Centre is focused on economic reforms,
we expect multiple measures to boost retail consumption and thereby an increase
in consumption of jewellery and gold products”.
Mitesh Khimji, director at Khimji Jewellers said "For the forthcoming budget, we anticipate two crucial actions from the government, particularly the Ministry of Finance. Firstly, we reiterate our longstanding request for a reduction in the duty imposed on gold imports. This measure would effectively align domestic gold prices with international standards, thereby eliminating the prevalent grey market. A duty reduction of approximately 2% to 3%, would significantly contribute to this objective."
"Secondly, we draw attention to the current transactional limit of two lakh rupees for PAN cards and similar identification documents. Considering the substantial increase in gold prices over the past two years, this threshold, which was established five years ago, no longer adequately reflects the current market dynamics. Consequently, an upward revision of the PAN card limit to a range of 3.5 to 4 lakh rupees would be better. This will help the industry and save customers from a lot of paperwork” Khimji added.
Source: https://economictimes.indiatimes.com/