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Gold import is dwindling, say WGC
Posted on: 03/Aug/2017 4:56:43 PM
During the second half of the year, it is likely that the gold imports in India will drop after the jewelers have rushed to have stocks ahead of the new system of tax implemented on 1st July, says World Gold Council.
Starting from investment to wedding gifts and investments, gold is being used in various aspects and its trading is close to the highest level in the past 7 weeks.
Speaking about this, Somasundaram, the PR, Managing Director of WGC’s India Operations said higher taxes are expected and it is obvious for an advancement in demand and import in the June quarter.
According to the newly introduced tax regime in July, the goods and service tax have turned into 3 percent from the earlier 1.2 percent. Jewelers need to pay the tax when they buy imported gold from banks, and the customers should also pay at the time of purchase.
Coming on to India, the country is the 2nd largest gold consumer. During the first half, the demand in India has increased to 30 percent from about one year ago which was 298.4 tonnes. However, the import at the time has got almost doubled to 518.6 tonnes, said WGC.
