New Delhi: A good news for people planning to buy gold! The prices of the precious metal are expected to go down further post the presentation of NDA’s maiden budget. Sources said that the government is planning to reduce the import duty levied on gold which will bring down its prices.
In the coming days the import duty on the yellow metal will be relaxed and the information for the same has been given to Trade and Commerce Secretary. The jewelers in India have been demanding the relaxation since a very long time.
The UPA government during its reign had increased the import duty on gold from 8% to 10%, in order to reduce the Current Account Deficit (CAD). As a consequence to which the import of gold witnessed a heavy downfall. After the increase in import duty, CAD at the end of the 2013-2014 was reduced to $32.4 billion in comparison to $8738 billion in the financial year 2012-2013.
Due to decrease in availability and supply of the precious metal a considerable increase in the prices was seen, this also led to the decrease in profit margin of the jewelers. The jewelers are hopeful of a reduction of 2-4% in the current import duty. Though sources revealed that a 4% reduction is on the cards.
What will be the impact on your pocket if the Modi government reduces the import duty by 4%
Price of Gold
1. Price of gold on COMEX – $1320 per 28.3495 gms
2. CIF duty on gold – $ 1 per 28.3495 gms
3. Price of 1 kg gold – Rs. 25, 53,789.64
4. Current import duty on gold -10%
5. Price of 1 kg gold after levying import duty – Rs. 28, 09,168.60
6. Price of 10gms of gold – Rs. 28,091.68
7. Reduced amount after 4% deduction on import duty- Rs. 1123.66
8. Price of 10 gms of gold after reduction – Rs. 26,968.02
