Tax hike to curb imports – Will gold prices rise? | Tax hike to curb imports – Will gold prices rise? | Puthiyathalaimurai – Tamil News | Latest Tamil News | Tamil News Online

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Prices are expected to rise further as taxes are raised to control gold imports.

To prevent India’s foreign exchange reserves from depleting due to increased imports, the central government has increased the import duty on gold. To curb gold imports, customs duty has been increased from 10.75 per cent to 15 per cent, the Union Finance Ministry said.

Gold trading at Rs 50,450 per 10 gm today; silver at Rs 59,400 a kg |  Business Standard News

As the Indian Rupee continues to depreciate against the US Dollar, experts believe that the increase in import duty will further increase the price of gold. Imports of gold have suddenly increased. According to the Finance Ministry, 107 tonnes of gold was imported in May. A similar amount of gold is expected to be imported in June.

Gold Prices Expected To Reach Rs 55,000 This Year, Say Experts

The current account deficit has widened due to the increase in gold imports. The finance ministry has announced that customs duty has been increased from the current 10.75 percent to 15 percent to curb gold imports. This is expected to help prevent further increases in gold imports.

gold price today: Gold rate today: Yellow metal gains but poised for 4th  weekly fall - The Economic Times

The country’s foreign exchange reserves are essential for importing crude oil, fertilizers, cooking oil and raw materials. Due to the impact of the Kovit epidemic and the war in Ukraine, the impact of rising prices around the world has increased. The value of the US dollar has also risen as the US has raised interest rates. In this situation, there is a lack of sufficient foreign exchange reserves in neighboring countries such as Sri Lanka, Pakistan and Nepal. In such an environment, the central government plans to curb unwanted imports.

–Ganapathy Subramaniam

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