|Photo: Jewel Origins|
It should seriously consider relaxing the 80:20 rule introduced last year to reduce gold imports, leading to an unwanted fallout—a spurt in gold smuggling. While raising the gold import duty in 2013 from four to 10 per cent the government had mandated that 20 per cent of the imported gold be exported.
Allowing unhindered access to gold can help revive the `5 lakh crore gems and jewellery trade that employs 25 lakh workers. The resulting customs duty collections will provide a much-needed boost to central tax revenues.
Courtesy: The New Indian Express