Not considering any proposal to cut gold import duty: FinMin

Finance ministry today 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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Customer orientation needs human touch

In the mid-1990s, while researching drivers of corporate excellence, we ...

Kuruvilla Pandikattu SJ

Can religion help us protect our planet?

Though not factually true, in popular imagination, the relationship between ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture