GOLD WILL BE COSTLY NOW
GOLD WILL BE COSTLY NOW
Government makes gold import more costly. Import duty hiked to 6%, Banks to revamp deposit schemes.
New Delhi: The Government on Monday sought to dampen the demand for precious metals by jacking up the import duty on gold and platinum to make them more expensive and help manage the economy better . Simultaneously, it stepped in to move the yellow metal lying in lockers to revamped gold depsoit schemes from banks as part of plan to stem the demand.
The immediate pinch will be felt due to an increase in customs duty from 4% to 6, although the move may spark illegal flow of the precious metal into the market. Traders said gold price- which went up by Rs. 315 to Rs. 31, 250 per 10 grams immediately after the finance ministry announced the decision in the afternoon - will rise in the coming days as the market factors in the impact.
Facts:
India is the largest importer of the yellow metal gold.
Gold is the highest contributor to India's import bill after petroleum product.
In the first three quarters of 2012-13, India imported gold worth nearly $38 bn.
The Government to link the gold exchange traded fund (ETF) with the gold deposit scheme offered by banks.
Economic affairs secretary Arvind Mayaram said the move was aimed at discouraging import of the precious metals.
Government makes gold import more costly. Import duty hiked to 6%, Banks to revamp deposit schemes.
New Delhi: The Government on Monday sought to dampen the demand for precious metals by jacking up the import duty on gold and platinum to make them more expensive and help manage the economy better . Simultaneously, it stepped in to move the yellow metal lying in lockers to revamped gold depsoit schemes from banks as part of plan to stem the demand.
The immediate pinch will be felt due to an increase in customs duty from 4% to 6, although the move may spark illegal flow of the precious metal into the market. Traders said gold price- which went up by Rs. 315 to Rs. 31, 250 per 10 grams immediately after the finance ministry announced the decision in the afternoon - will rise in the coming days as the market factors in the impact.
Facts:
India is the largest importer of the yellow metal gold.
Gold is the highest contributor to India's import bill after petroleum product.
In the first three quarters of 2012-13, India imported gold worth nearly $38 bn.
The Government to link the gold exchange traded fund (ETF) with the gold deposit scheme offered by banks.
Economic affairs secretary Arvind Mayaram said the move was aimed at discouraging import of the precious metals.
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