Expectations from Budget 2023: If you want to buy gold at a cheap rate, then wait for a while! This big relief can be found in the budget
The Commerce Ministry has demanded the government reduce the import duty on gold in the budget (Budget 2023). Demanding a reduction in the import duty on gold, the commerce ministry said that this would boost exports as well as increase gems and jewelry manufacturing in the country.
The Ministry of Commerce has proposed to reduce the import duty on gold in the upcoming budget to promote the gems and jewelry industry.
New Delhi. If you are making up your mind to buy or invest in gold and therefore are waiting for the gold price to be low (Gold Price Today), then your wait may end after the budget because the Commerce Ministry has In the budget (Budget 2023), the government has been demanded to reduce the import duty ie export duty on gold. Actually, the Ministry of Commerce believes that the Finance Ministry can take a decision on this in the budget. Before the upcoming budget, people are expecting important announcements from the government on many issues including inflation and change in income tax rates.
Demanding a reduction in the import duty on gold, the commerce ministry said that this would boost exports as well as increase gems and jewelry manufacturing in the country. In July last, the central government increased the import duty on gold from 10.75 percent to 15 percent. The government had taken this step with the intention of reducing the current account deficit and controlling the rising import of gold.
The diamond and jewelry sector is continuously demanding
The basic customs duty on gold is 12.5 percent while the agriculture infrastructure development cess is levied at the rate of 2.5 percent. In this way, the total effective import duty becomes 15 percent. Keeping in mind the demands of the gems and jewelry industry, the commerce ministry has urged the finance ministry to make such a proposal in the upcoming budget. The Commerce Ministry has also demanded a change in import duty on some other products to promote the manufacture and export of gems and jewelry.
Stakeholders associated with the export of gems and jewelry have been demanding a reduction in import duty for a long time. Colin Shah, former chairman of the Gems and Jewelry Export Promotion Council (GJEPC), said the industry is expecting a slew of export-promoting measures to be announced in the budget to be presented on February 1.
Reduction in gold import duty will be beneficial
Shah said, “The reduction in import duty on gold and a progressive repair policy for jewelry will be of great benefit to the sector. We are also hopeful that the possible taxation on rough diamonds and the duty on seeds used to prepare diamonds in the laboratory will be abolished.
During April-November of the current financial year, the export of gems and jewelry from the country increased by two percent to $ 26.45 billion. During this period, gold imports decreased by 18.13 percent to $ 27.21 billion. The reduction in gold imports helps in reducing the current account deficit.