Budget 2022 Expectations for Gold-Silver: Since the presentation of the budget last year, the performance of gold and silver has been better and new employment opportunities have been created in the industry. Now the industry has high expectations from the budget of the next financial year as well.
Budget 2022 Expectations for Gold-Silver: India has a long standing tradition of saving gold and silver as property. These are bought on auspicious occasions like marriage-festivals. These have been considered as a safe investment option which is transferred for generations. The price of gold is higher in comparison to other metals but for some time there has been a sharp jump in the price of silver. Since the presentation of the budget last year, the performance of gold and silver has been better and new employment opportunities have been created in the industry.
Last year, Finance Minister Nirmala Sitharaman announced a cut in import duty. Now on February 1 this year, the Finance Minister will present the budget for the next financial year 2022-23, which has attached many hopes of the Gems and Jewelery Export Promotion Council (GJEPC). The industry expects a reduction in import duty on precious metals like gold and silver. With this, India can be among the top countries in their exports. Apart from this, employment opportunities will also increase.
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reduction in import duty
Gold associations have urged the government to reduce the import duty on gold from 7.5% to 4%. This will stop the increasing smuggling of gold after the increase in import duty in the year 2019. The central government had earlier increased the import duty of gold and silver in the year 2019 due to the increasing deficit in the current account, which was announced by the Finance Minister, Nirmala Sitharaman in the last year’s budget to reduce it from 12.5% to 7.5%. Before the 2019 budget, GIC (Gems and Jewelery Domestic Council) had demanded a reduction in import duty on gold to 4%, which is much lower than the 7.5% fixed in the previous budget. If the import duty is reduced in the budget, then the government will directly get a setback of thousands of crores, but the government will benefit more if the smuggling of gold is stopped.
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Demand for increase in GST
Traders of gold and silver are hopeful that the government can increase the GST on gold. This will help in reducing the working capital cost of the industry. Apart from this, it will help in gradually increasing employment in the jewelery industry and settling the losses due to the decreasing import duty.
Urge to abolish commodity transaction tax
The Indian Bullion and Jewelers Association (IBJA) hopes that the government can abolish Commodity Transaction Tax (CTT) from the government to stop the dabba business across the country.
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Jewelery purchase limit hiked
The jewelery industry has urged that the purchase limit for gold and silver jewelery without KYC should be increased to Rs 5 lakh. This limit is currently limited to Rs 2 lakh, that is, it is not necessary to provide PAN or Aadhaar information for buying jewelry below Rs 2 lakh.
(Article: Vidit Garg, Director, MyGoldkart)
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