WGC Report: Increasing import duty on gold in budget 2025 will have an impact on business
Budget 2025: According to the World Gold Council (WGC), the government's decision to reduce import duty on gold in July last year has had a very positive impact on the industry. However, he has expressed apprehension that any increase in tariff in the upcoming budget may adversely affect the business. What announcements should be made in the budget in the interest of the gold business? Know the opinion of WGC on this.
A very positive effect of the industry was the government's decision to reduce import duty on gold in July last year, and any increase in tariff in the upcoming budget may adversely affect the business.The World Gold Council (WGC) has expressed this apprehension.
Requesting the government not to increase import duty on the precious metal ahead of the 2025-26 Budget, Sachin Jain, Regional CEO, WGC India, said, "Any increase in import duty in the upcoming Budget may have an adverse impact, leading to increased smuggling, higher domestic gold prices and pushing back the industry."
In a pre-budget note, Jain said, "It is imperative that all stakeholders, including government bodies, industry players, and financial institutions, collaborate to maintain the positive momentum of the market. By fostering a synergistic environment, we can ensure that the gold industry continues to thrive, innovate, and contribute significantly to India's economic growth and prosperity."
Jain said they are expecting progressive, people-friendly, and industry-friendly announcements in the Budget, like in the last decade. The gold industry contributes an estimated 1.3% to India's GDP and employs around 20 to 30 lakh people. In Budget 2024 presented in July, customs duty on gold was reduced from 15% to 6%.
The WGC argues that the reduction in customs duty has resulted in a decrease in informal imports, stabilized official channels, and encouraged domestic purchases of gold. The cuts in gold taxes have resulted in an increasingly organized and therefore more transparent industry, which in turn strengthens the market.
The Budget session of Parliament beginning on January 31 will go on up to April 4. The Union Budget 2025 is scheduled to be presented on February 1, for which the Economic Survey for the financial year 2024-25 will be presented on January 31. All eyes are going to be on the major announcements and far-reaching economic plans for the remaining period of Modi 3.0 tenure. This budget is being presented amid weak GDP figures and the slowdown in consumption in the economy.
