THE HEAVY CUSTOM OF GOLD
Article Abstract:
The Finance Ministry of the Government of India recently raised the customs duty on imported gold from Rs250 per 10 gm to Rs400 per 10 gm from January 5, 1999. Gold worth $7 billion is expected to be imported in 1998-99. The Government feels that the trade deficit would increase with the outflow of foreign exchange spent on importing gold. It has raised the customs duty on gold to net more revenue. Experts however feel that this hike is likely to encourage smuggling of gold, which had fallen to 60 tonnes in 1997-98 from 108 tonnes in 1996-97. The unofficial dealing (hawala) in dollars may increase again. Gold dealers in Dubai, who had lost their business after the banks were allowed to import gold under open general licence, will benefit from the action of the Government of India. Since this is the marriage season in India, domestic demand is likely to increase, boosting the price of gold further. (rk/kvr)
Comment:
The Finance Ministry of the Government of India recently raised the customs duty on imported gold from Rs250 per 10 gm to Rs400 per 10 gm from January 5, 1999.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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SYNDICATE BANK PLANS TO IMPORT GOLD FOR JEWELLERS
Article Abstract:
The Syndicate Bank is thinking of importing gold for the domestic jewellery industry and has already approached the Reserve Bank of India for permission. This is a part of its strategy to have a better rapport with industry segments. This will enable jewellers to buy gold directly from the bank by paying a nominal commission and will eliminate the need for them to undergo import formalities. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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