New Delhi, March 4: The commerce ministry today called for the easing of curbs on gold imports as excessive regulation is encouraging the smuggling of the yellow metal.
“I have been of the consistent view that we need to have a balance. Over-regulation leads to another problem...and that is smuggling. Therefore, some easing is essential,” commerce minister Anand Sharma told reporters here today.
p>Sharma said he had taken up the issue with the finance ministry and the Reserve Bank of India.
UPA chairperson Sonia Gandhi had earlier forwarded a letter from the All India Gems and Jewellery Association to the ministry seeking a tariff cut.
The government had raised the import duty on gold to 10 per cent in 2013 from 4 per cent to rein in a ballooning current account deficit (CAD). Supplies had also dried up because the RBI has mandated that importers would have to keep aside 20 per cent of any imported gold for re-export as jewellery.
Gold was the second biggest component in the import bill after crude oil. The higher gold duty came after CAD, or the gap between India’s foreign currency income and spending, mounted to a record of $88.2 billion, or 4.8 per cent of the gross domestic product (GDP), in 2012-13.
New Delhi, March 4: import of gold as excessive regulation today ban called for easing the Commerce Ministry is encouraging smuggling of yellow metal. "I think we need to strike a balance that has been watching. More regulation leads to another problem. And smuggling. Therefore, some spontaneity, "Commerce Minister Anand Sharma told reporters here today. Sharma said that the Finance Ministry and the Reserve Bank of India raised the issue with. Upâ President Sonia Gandhi had earlier demanded a tariff reduction in the Ministry to all India sent a letter from James & jewellery Association. The Government has a ballooning current account deficit (CAD) rein in 4 percent to 10 percent in 2013 from import duty on gold was raised. RBI importers jewelry as export percentage of any imported gold will keep that separate 20 mandatory because supplies had also dried up. Gold after crude oil import bills was the second largest component in the. Higher gold came after duty CAD, or India's foreign currency income and expense the difference between 2012-13 percent of gross domestic product (GDP) at $ 88200000000, or mounted to a record of 4.8.
