English | دری

India to review gold tax but import duty to stay

in International Business

India to review gold tax but import duty to stay

The Indian government has said it will review a new tax on gold jewellery, after 11 days of protests by gold shop owners.

Shops have been closed in some parts of India since the levy was announced in the federal budget on 16 March.

However authorities said they would not budge on an import duty hike from 2% to 4%.

India is the biggest importer of gold in the world.

In 2011 India imported 933 tonnes of gold, according to the World Gold Council.

Finance Minister Pranab Mukherjee said the government would reconsider its 0.3% so called excise tax on gold jewellery because it did not want to harass the industry.

However he added that the import duty would stay because Indians were spending “precious foreign exchange” to buy gold.

The high gold imports have weakened the rupee against the major global currencies.

Gold demand by country

  • India – 32%
  • Greater China – 20%
  • Europe and Russia – 13%
  • Middle East and Turkey – 12%
  • North America – 8%
  • Others 15%

Source: BBC



Related Articles

Fake economic data a serious problem for Chinese policymakers

There have long been doubts about the quality of Chinese economic data, until finally the Chinese government has admitted it.

Premier Wen Jiabao set for 15th China-EU summit

Chinese Premier Wen Jiabao is set to take part in his last EU-China summit before handing over power later this

Asian Infrastructure Investment Bank, SAARC Development Fund to co-fund projects in SAARC Region

A delegation of AIIB led by Sir Danny Alexander, Vice President & Corporate Secretary visited the SAARC Development Fund Secretariat

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.