Gold import duty raised to 6% to curb rising demand
- IAF An-32 aircraft missing: Manohar Parrikar undertakes aerial survey of search operations
- Hillary Clinton picks Tim Kaine as running mate
- Judith D'souza, Indian kidnapped in Kabul, rescued: Sushma Swaraj
- Bhagwant Mann interview: 'I just wanted to show system of draw of lots in Zero Hour'
- Toll climbs to 46, Rajnath visits Kashmir valley today
Barely a month before finance minister P Chidambaram presents the Union Budget, his ministry on Monday raised the import duty on gold and platinum to 6 per cent from 4 per cent and announced measures to augment domestic supply of the yellow metal.
"It is difficult to establish the impact on the current account deficit (CAD), but there will be some moderation in the demand for gold, not only from the import duty increase but also due to unlocking gold from the ETFs," said Arvind Mayaram, secretary, department of economic affairs.
Gold prices rose by Rs 315 to Rs 31,250 per 10 gm in Delhi following the announcement. Chidambaram had, earlier this month, hinted at a possible increase in the customs duty for gold imports, which are a big drain.
About $38 billion worth of gold had been imported this fiscal year until December, even as the CAD touched 4.6 per cent of the GDP in the first half of 2012-13. Gold imports stood at $56.5 billion in 2011-12.
The two percentage point import duty increase, which comes into effect immediately, will be "reviewed after some time if there is a moderation in the quantity of gold imports," Mayaram said.
He also appealed to people to moderate their demand for gold.
To improve the domestic supply of gold, the finance ministry will also link gold exchange traded funds and the gold deposit scheme. This will help unlock gold assets physically held by mutual funds under gold ETFs and enable them to deposit the gold with banks under the gold deposit scheme.
Additionally, to encourage individuals to participate in the scheme, banks will be directed to lower the threshold for deposit of gold and reduce the tenure of such deposits to six months from the current three years.
- Article 370 was honoured in the breach and the autonomy promised to J&K has been chipped away from time to time
- Violence against Dalits is not something that began in past two years as the tenor of debate in Parliament
- Arvind Kejriwal is uncomfortable with anyone with a mind of his own.
- Not just the Arunachal switch but the choice of Sheila Dikshit for the UP are warnings to the BJP
- Gujarat unrest shows while Dalit lives have improved, conflict has increased
- Zakir Naik is ‘protected’ as an Indian citizen but he considers himself a Muslim first