New Delhi is a capital of India and is known for large population. Every year when festival season begins, the city witness huge gold jewellery purchase mostly amongst females. From diwali, dhanteras, akshartrthya to other wedding occasions, gold rate is something that always affect buyer’s perspective to spend on gold during festival season.
While keeping this aspect into consideration, the government of India has finally decided to cut down gold import tariff which is undoubtedly a good news for gold trading industry in the country. Not only gold retailers in India are happy with the news but in fact more and more people are now searching for gold offer online to avail benefit of less tariff imposed on gold. It has come as sigh of relief for investors and gold improving companies and commercial banks.
The government announced that it has reduce tariff value on gold to $375 per 10 grams and for silver it will be $512 per kilogram. The decision was long awaited, but given the fact global price trend for gold and silver is on the downwards movement, it was inevitable that the government will reduce the import tariff sooner or later.
Until last month tariff value was fixed at $393 per 10 gram imported gold and for silver it was fixed at $549 per kilogram. The prices are revised based on global prices.
The finance minister of India notified the Central Board of Excise and Customs about the newly fixed import tariff on gold and silver.
The importance of this announcement is even more significant because it is the second largest imported commodity after petroleum in India and it has a direct and indirect impact on country’s economy because if the import duty is higher on gold and silver it will directly affect the current account deficit.
A reason why, not only buyers are looking forward to make more purchase of discounted gold jewellery, coins and bars but in fact retailers and sellers of gold are also giving huge festival discount to increase sales and thus to make more profit out of it.
On the other hand, government of India has been consistently asking its citizens to avoid investing in gold and instead invest in other options to help the country reduce its import of gold and silver, however, the gold obsessed country has not been able to cut down its import as it would like to.
However, sensible investment in gold is advised to avoid any loss. Besides this, it is important to have an account of gold purchase in terms of receipts to avoid issued in taxation.