The budget presented last week may not have fulfilled many expectations of the people, but it has been a great budget for those who buy gold. After the proposal to cut custom duty in the budget, the price of gold has fallen drastically. Now the prices at the domestic level have come down to such a level that people will not need to buy gold from Dubai.
The picture changed after the budget
Actually, gold in India has been expensive compared to many other countries, especially Dubai. Due to this, many people prefer to buy gold from Dubai, because gold is cheaper there. According to a report by ET, after the reduction in custom duty on gold in the budget, you can now buy gold as cheap as Dubai in India itself.
The shine of Dubai’s gold will diminish
The report quotes Indian jewelers doing business in the United Arab Emirates as saying that the reduction in custom duty will reduce the desire of Indian buyers to buy gold from Dubai. He says that the difference between the duty levied on gold in the country and abroad will reduce and the fall in gold prices in the country after the budget will make a difference. This will curb the trend of buying gold from abroad, especially from Dubai.
Prices reduced by up to 5 thousand rupees
Finance Minister Nirmala Sitharaman presented the full budget for the financial year 2024-25 on Tuesday 23 July last week. In Budget 2024, she proposed to reduce the total customs duty on gold from 15 percent to 6 percent. After the proposal, gold prices are falling continuously. Since the budget, the price of gold in the domestic market has fallen by up to Rs 5 thousand per ten grams.
Only one percent difference in tax
In the ET report, Rajiv Popley, director of Popley & Sons, has been quoted as saying – Custom duty in India has been reduced to 6 percent, while buying gold in Dubai attracts 5 percent VAT. In such a situation, a difference of 1 percent remains, which can be compensated by labor cost. Labor cost in India is quite low. With hallmarking and HUID number being mandatory in India, the concerns raised about the purity of gold in the country have been removed.
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