Demand for reduction of import duty on gold from 10.75 per cent to 5 per cent in the Union Budget

The import duty was only 2 per cent in 2004. The country imports up to 1,000 tonnes of gold.

Rajkot: Consumers, jewelers and the jewelery industry are facing difficulties as both the central government and the state government collect 13.75 per cent tax on gold. Various gold unions are making representations to the government to reduce the tax.

Extensive effects of Corona, the peak price of gold, are being felt in the gold trade. Effective 14% tax seems like a damn thing to everyone. In India, cess and surcharge on import duty add up to 10.75 per cent. In addition, 3% GST. Taxes as high as 13.75 per cent are levied on the consumer. When the price of gold reaches above 50,000, the tax of 13.75 per cent becomes unbearable. Smuggling of gold from Gulf countries is also rampant due to high import duties. As the central government prepares to present its budget on February 1, the gold trade across India wants to reduce the import duty to 4 or 5 per cent and to abolish the surcharge on it and reduce the current tax to 50 per cent. It may be mentioned that the import duty in 2004 was only 2%. The country used to import 800 tonnes of gold which has increased to 1000 tonnes. Smuggling has also increased to avoid higher tax rates.