Budget 2019-20: The government today in its Union Budget 2019-20 announced an increase in customs duty to 12.5 per cent from 10 per cent as against the industry expectation which had demanded a significant cut in the customs duty as the gold.
Union Budget 2019-20: The government today in its Union Budget 2019-20 announced an increase in customs duty to 12.5 per cent from 10 per cent as against the industry expectation which had demanded a significant cut in the customs duty as the gold. The industry had demanded a cut in import duty to the tune of 4 per cent in a bid to boost demand for the precious yellow metal. The gold prices surged 0.04 per cent to Rs 34,230 per 10 gram in futures trade Friday. On the Multi Commodity Exchange, gold for delivery in August contracts traded higher by Rs 13, or 0.04 per cent, to Rs 34,230 per 10 gram in a business turnover of 16,978 lots. Internationally, the yellow metal prices plunged 0.27 per cent at USD 1,417.10 an ounce in New York. “Acche Din is yet to come for the Jewellery industry. As expected, there was no relief in import duty, in fact, today the government increased customs duty on gold. According to the Budget proposals, import duty to be hiked on gold and precious metals to 12.5%, from the current level of 10%. The decision came at a time when the domestic jewellery industry was demanding a cut in the import duty and relaxation of other import norms for increasing availability of the gold to boost jewellery exports,” Ajay Kedia, Director, Kedia Commodity told Financial Express Online after the budget was presented by the Finance Minister Nirmala Sitharman on Friday.
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“With the rise in customs duty on gold, prices will rally in the short term. However, ahead of festival seasons, an all-time high gold will taste sour to buyers. Hence overall demand may fall going ahead. Moreover, today the market will keenly wait for US employment report. So we expect prices to be volatile with a positive bias,” Jigar Trivedi, Fundamental Analyst- Commodities, Anand Rathi, Shares & Stock Brokers told Financial Express Online.