NATIONAL NEWS

Gold Customs Duty Hike Worries Jaipur Jewellers

Jaipur Jewellers

 

Jaipur: Jewellers and gold traders in Jaipur have expressed concern on the Union Budget 2019 increasing the customs duty on gold and precious metals from 10 per cent to 12.5 per cent.

“The customs duty on gold has been increased. There’s already provision of 3 per cent GST. The customers now need to shell out 15.5 per cent extra on buying gold, which is quite high. This will definitely affect the demand in the market and boost smuggling which is already high in Jaipur,” said Sanjay Kala, President, Jewellers Association Jaipur, one of the oldest trade associations in India. “The normal range of customs duty should be between 4-6 per cent to help decent trading and keep a check on gold smuggling. The 12.5 per cent levy will only lead to increase in gold smuggling, posing a challenge for those who want to trade legally,” he said.

The Customs Act 104 says any person found smuggling gold worth under Rs 1 crore can easily get bail. The case goes to court, if the smuggled gold is over Rs 1 crore. “Hence, smugglers do not care about getting caught once or twice. For 1 kg of smuggled gold, the smugglers get a profit of Rs 3 lakh, said sources. (IANS)

 

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