<p class="title">The decision to raise import duty on gold in the Union Budget was taken after a careful consideration, including its likely impact on smuggling of the yellow metal, a top government official said.</p>.<p class="bodytext">Finance Minister Nirmala Sitharaman hiked import duty on gold and other precious metals in the Budget to 12.5 per cent from 10 per cent.</p>.<p class="bodytext">"This decision has been carefully taken. The government has assessed that (smuggling) dimension as well," Finance Secretary Subhash Chandra Garg told PTI.</p>.<p class="bodytext">He said this when asked about concerns being raised by certain quarters on further rise in gold smuggling due to the increase in import duty on the yellow metal.</p>.<p class="bodytext">The gems and jewellery industry has expressed disappointment with the Union Budget 2019-20, saying that the increase in customs duty will negatively impact the sector, encourage grey market and make jewellery more expensive in the domestic market.</p>.<p class="bodytext">All India Gem And Jewellery Domestic Council Chairman N Anantha Padmanaban has stated that the increase in customs duty and GST will hike the prices by 15.5 per cent, which will benefit the grey market.</p>.<p class="bodytext">"Smuggling is already on the rise and this move will further boost the grey market which will provide 4-5 per cent discount, making it attractive for consumers. We expect the grey market will increase by 30 per cent," he has said.</p>.<p class="bodytext">World Gold Council Managing Director, India, Somasundaram PR too has said that the grey market will thrive which will dilute efforts to reduce cash transactions.</p>.<p class="bodytext">India is one of the largest gold importers in the world and the imports mainly take care of demand from the jewellery sector.</p>.<p class="bodytext">Gems and jewellery exports declined 5.32 per cent to USD 30.96 billion in 2018-19.</p>.<p class="bodytext">The country's gold imports dipped about 3 per cent in value terms to USD 32.8 billion during 2018-19. The dip in gold imports is expected to keep a lid on the current account deficit.</p>.<p class="bodytext">Total import of the precious metal stood at USD 33.7 billion in 2017-18 as against USD 27.5 billion in 2016-17 and USD 31.8 billion in 2015-16. PTI DP RR CS MR RVK RVK</p>
<p class="title">The decision to raise import duty on gold in the Union Budget was taken after a careful consideration, including its likely impact on smuggling of the yellow metal, a top government official said.</p>.<p class="bodytext">Finance Minister Nirmala Sitharaman hiked import duty on gold and other precious metals in the Budget to 12.5 per cent from 10 per cent.</p>.<p class="bodytext">"This decision has been carefully taken. The government has assessed that (smuggling) dimension as well," Finance Secretary Subhash Chandra Garg told PTI.</p>.<p class="bodytext">He said this when asked about concerns being raised by certain quarters on further rise in gold smuggling due to the increase in import duty on the yellow metal.</p>.<p class="bodytext">The gems and jewellery industry has expressed disappointment with the Union Budget 2019-20, saying that the increase in customs duty will negatively impact the sector, encourage grey market and make jewellery more expensive in the domestic market.</p>.<p class="bodytext">All India Gem And Jewellery Domestic Council Chairman N Anantha Padmanaban has stated that the increase in customs duty and GST will hike the prices by 15.5 per cent, which will benefit the grey market.</p>.<p class="bodytext">"Smuggling is already on the rise and this move will further boost the grey market which will provide 4-5 per cent discount, making it attractive for consumers. We expect the grey market will increase by 30 per cent," he has said.</p>.<p class="bodytext">World Gold Council Managing Director, India, Somasundaram PR too has said that the grey market will thrive which will dilute efforts to reduce cash transactions.</p>.<p class="bodytext">India is one of the largest gold importers in the world and the imports mainly take care of demand from the jewellery sector.</p>.<p class="bodytext">Gems and jewellery exports declined 5.32 per cent to USD 30.96 billion in 2018-19.</p>.<p class="bodytext">The country's gold imports dipped about 3 per cent in value terms to USD 32.8 billion during 2018-19. The dip in gold imports is expected to keep a lid on the current account deficit.</p>.<p class="bodytext">Total import of the precious metal stood at USD 33.7 billion in 2017-18 as against USD 27.5 billion in 2016-17 and USD 31.8 billion in 2015-16. PTI DP RR CS MR RVK RVK</p>