Jewellers and the bullion trade were disappointed with the Union Budget 2015 as the expected cut in import duty on gold from 10 per cent did not happen. The high rate has been responsible for elevated levels of gold smuggling, they say.
“For the gem and jewellery industry, the only reaction is disappointment,” Vipul Shah, chairman, Gem Jewellery Export Promotion Council, said. “The budget overlooked a significant area to curb black money and a long-pending demand from the industry to reduce the gold import duty.”
However, the Union Finance Minister announced steps for monetisation of gold in the budget.
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While the fine print on these proposals is awaited, the industry has by and large been pushing for the introduction of a structured and customer friendly gold monetisation scheme. It welcomed these concrete steps to go beyond duty cuts and artificial regulatory limitations on demand and instead focus on holistic solutions. “We welcome the proposed new initiatives of gold bonds and gold monetising schemes,” V.P. Nandakumar, managing director and chief executive officer, Manappuram Finance, said. “We believe it is the ideal way to reduce the import of gold.”