SEARCH

News » National

Updated: February 7, 2014 16:32 IST

Not considering any proposal to cut gold import duty: Finance Ministry

PTI
Comment (1)   ·   print   ·   T  T  
A file photo of Minister of State for Finance J.D. Seelam. Photo: T. Vijaya Kumar
The Hindu A file photo of Minister of State for Finance J.D. Seelam. Photo: T. Vijaya Kumar

Finance Ministry on Friday said it is not considering any proposal to slash import duty on gold in view of country’s Current Account Deficit (CAD) position.

“At present, there is no proposal under consideration to reduce the import duty on gold, taking into account the likely impact on the Current Account Deficit,” Minister of State for Finance J.D. Seelam told the Lok Sabha in a written reply.

In 2013, the government hiked import duty thrice to 10 per cent on import of gold in wake of high CAD which in turn was impacting the value of the rupee. The Reserve Bank too imposed a series of curbs to restrict gold imports.

The CAD had touched a record high of $88.2 billion in 2012-13. However, following series of measures, by both the RBI and the government, CAD is likely to fall below $50 billion in the current financial year ending March 31.

Gold imports, which had peaked to 162 tonne in May, came down to 19.3 tonne in November after the government hiked import duty thrice in 2013, taking it to 10 per cent.

Finance Minister P. Chidambaram had recently said the restrictions on gold imports will be reviewed by March end.

Government collected Rs. 7,590 crore revenue in form of import duty on gold during April-December 2013. In 2012-13 fiscal, the collection was Rs. 10,463 crore.

Authorities have admitted that curbs were leading to gold smuggling. There has been about 1-3 tonne of gold smuggled into the country every month following the restrictions imposed on shipment last year.

In value terms, gold and silver imports in April-December period declined 30.3 per cent to $27.3 billion from $39.2 billion during the same period a year earlier.

In the first half (April-September) of current fiscal, CAD narrowed to $26.9 billion (3.1 per cent), from $37.9 billion (4.5 per cent) in the first half of 2012-13.

More In: National | News | Business | Economy

Its fine that the hiked duty on import of gold in the wake of high CAD
which in turn was impacting the value of the rupee will be remaining the
same. The very purpose of maintain high duty for imports will be
benefited to the nation only if we could curb smuggling of gold. It is
to be noted that every day we read on news reports on gold haul in
various airports which shows fingers towards the laxity in strictly
enforcing deterrent measures that discourage import of gold through
illegal channels.

from:  Madan Menon Thottasseri
Posted on: Feb 10, 2014 at 00:14 IST
This article is closed for comments.
Please Email the Editor

WorldView with Suhasini Haidar


Extreme outcomes in the Great Game over Ukraine

The shooting down of MH17 is one of the most horrific consequences of the latest version of the "Great Game".

Free for all


An Uncritical Eye - "The World Before Her"

It’s a telling commentary that the media groups blacklisted any news on the film and the VHP chose to make it more popular!

Known for seeking real-life inspirations for his films, he has opted for five newcomers for the film that revolves around the models who gain popularity after featuring in famous calendars. »

Gujarat, Rajasthan and Punjab: The Need for a Border States Group

The aim of the research report by Tridivesh Singh Maini is to examine the approach of the political leadership, as well as the business community, in three ‘border States’ towards India-Pakistan ties.This paper has sought to look at a number of factors, which include politics, economics as well as security issues.Read Article »

  • facebook Facebook
  • twitter Twitter

Resources

More Resources »

Metroplus

More Metroplus »

Sunday Magazine

More Sunday Magazine »

Friday Review

More Friday Review »

Habitat

More Habitat »

Young World

More Young World »

O
P
E
N

close

Recent Article in National

Where the guillotine falls

The Lok Sabha on Wednesday finished discussions on 'demands for grants'. Every ministry has to make demands for funds to the finance min... »