NEW DELHI: Import duty on gold has been slashed by over 50% to make smuggling of the yellow metal much more “remunerative.”
Moving the finance bill in the lower house of parliament on Thursday, finance minister Manmohan Singh, announced that the import duty payable would be Rs 220 per 10 grams as against Rs 450 per 10 grams as announced in the budget.
The finance minister, while introducing the budget, had announced the scheme under which Indians including people of Indian origin were allowed to import up to five kilos of gold per person as part of their baggage on payment of import duty at the rate” of Rs 450 per 10 grams, which worked out to be 15% in ad valorem terms. He said the scheme has already hurt the smugglers and the reductions announced Thursday was aimed at making smuggling of precious metal more unremunerated.
Article extracted from this publication >> May 15, 1992
