Is it likely that gold import would increase to 700 tons?
Posted on: 28/Nov/2017 5:00:26 PM
It is expected that the import of gold in India would increase to 700 tons during the current financial year 2017-18.
Pravin Shankar Pandya, the president of gem-stones and jewellery export development council, had a session regarding this with the press reporters.
He explained that there are strong prospects of 5% VAT being introduced and implemented in Dubai.
Generally, 5% Import Tax is charged for gold and diamond jewellery in most Middle East Gulf countries. This has severely adversely affected India’s export performance.
He informed that out of the India export business worth Rs. 49000 Crores, 50% is done through Dubai. Import Tax for gold stands at 10%. Giving due special consideration to the extremely grim situation prevailing in this business, this import tax of 10% must be reduced to 4% to 5%.
During the financial year 2016-17, the gold import was 500 tons. It is expected that this would increase to 700 tons during the financial year 2017-18.
