Government likely to cut import duty on gold in upcoming budget
today Jan 14, 2020
The finance ministry is likely to consider the jewellery sector’s demand and cut the import duty on gold from the current 12.5 percent to boost exports.
The jewellery sector had earlier written to the ministry and sought a reduction in import duty from 12.5 percent to 6 percent. In the last budget, the government had increased the import duty on gold from 10 percent to 12.5 percent.
India is the largest importer of gold and the hike in import duty severely affected the overall industry which also resulted in a decline in jewellery exports.
The commerce ministry has also sought a reduction in the import duty on gold in the forthcoming budget to boost exports from the sector.
“What will be the exact cut in import duty is difficult to say, but it is expected to be cut, but a cut is probably inevitable looking at weak exports. Indian jewelleries are in good demand abroad, the urgency is to boost exports where we have strength,” anonymous sources were quoted as saying by IANS.
As per government data, India's gold imports fell about 7 percent to $20.57 billion during April-November period of the ongoing financial year. The commerce ministry data said Imports of the yellow metal stood at $22.16 billion in the same period of 2018-19.
The country’s finance minister will be presenting the budget on February 1.
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