Further Hike In Duties On Bullion Will Lead To Smuggling: World Gold Council
Date
1/27/2025 2:08:19 PM
(MENAFN- KNN India)
New Delhi, Jan 27 (KNN) The World Gold Council (WGC) has reported that the government's decision to reduce gold import duties in July 2023 has yielded significant positive outcomes for the industry.
The organisation is now advocating against any potential tariff increases in the forthcoming 2025-26 Budget, citing concerns about potential negative consequences.
Sachin Jain, Regional CEO, WGC India, emphasised the risks associated with potential duty hikes in the upcoming budget. He warned that such increases could trigger elevated smuggling activities, drive up domestic gold prices, and impede industry progress.
Jain stressed the importance of maintaining the current momentum through collaborative efforts between government bodies, industry stakeholders, and financial institutions.
The gold sector plays a crucial role in India's economy, contributing approximately 1.3 percent to the nation's GDP and providing employment to between 2 and 3 million people.
The previous Budget announcement in July 2024 saw a substantial reduction in total customs duty on gold from 15 percent to 6 percent. According to the WGC, this policy shift has effectively curtailed unofficial imports while stabilising official channels and promoting domestic gold purchases.
The upcoming budget session of Parliament is scheduled to commence on January 31 and continue through April 4, with the Budget presentation set for February 1.
The Economic Survey for 2024-25 will precede the Budget announcement, being tabled on January 31.
The budget presentation holds particular significance as it comes amid concerns over GDP performance and subdued consumption levels in the economy, with stakeholders keenly awaiting the government's economic roadmap for the remainder of the Modi 3.0 administration.
(KNN Bureau)
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