Finance Minister Nirmala Sitharaman has increased import duty on gold, silver in the budget. Since then, the traders of gold and silver are offering various kinds of arguments against it. Revenue Secretary Ajay Bhushan Pandey says that the decision to increase the duty on gold and other precious metals in the general budget was made under the policy of reducing the import of unnecessary products of the government. If the trafficking is happening, law enforcement agencies will deal with it.
Pandey said that the economic decisions are taken with full financial realities in mind, not with the intention of misusing it.
In the General Budget 2019-20, import duty on gold and other precious metals has been increased from 10 percent to 12.5 percent. Few of these circles are expected to increase gold smuggling. In response to this, Pandey said this.
Pandey said, "Government has declared policy to reduce imports of unnecessary items, because we should not use our foreign exchange reserves to impose imports of non-essential commodities. As far as the country is concerned, the gold definitely comes in the category which can be imported a little less.
He said, 'This decision is in line with the government's policy. If this is encouraging smuggling or other things, then this is a different problem and our law enforcement agencies will deal with it.
Pandey said that due to the emergence of some minor problems like smuggling, we can not stop efforts to reduce imports of unnecessary items. This will not be a good economic policy.
He said that if the debate on increasing the import duty on gold by 12.5% to the extent of smuggling, then the 10 percent duty on it was not justified. The question is, how justified is the debate.
Gems and jewelery industry disappointed on decision to raise duty on gold and other precious metals in the budget Industry says that smuggling will increase and jewelry will become more expensive in the domestic market.
On the other hand, Finance Secretary Subhash Chandra Garg says that in the general budget, the decision to increase the import duty on gold and other expensive metals has been done in full consideration. The risk of gold smuggling has also been assessed while increasing it.
Finance Secretary Garg said, "This decision has been taken very thoughtfully. The government has also assessed the aspect of its smuggling. "All India Gems and Jewelery Domestic Council Chairman N. Anant Padmanabhan said that due to the increase in import duty and goods and service tax (GST), the price of gold will increase by 15.5 percent. It is expected to increase the illegal gold business by 30 percent.
Somasundaram P.R., Managing Director, Indian Operations, World Gold Council Said that the illegal business of gold will increase and the government's efforts to reduce cash transactions will have an impact on the success.
Pramod Agarwal, Chairman of Gems and Jewellery Export Promotion Council, says that due to this, local businessmen have to be forced to move their business to neighboring countries. India is the largest importer of gold in the world. Gold imports of $ 32.8 billion in the country in the financial year 2018-19
