CAG report says regulations do not impact gold trade

CAG report says regulations do not impact gold trade

CAG report says regulations do not impact  gold trade
A CAG report tabled in Parliament on Friday said import regulations or export promotion schemes did not have any material impact on gold trade. It also asked government to take outcome analysis of all incentives.

“Department of Commerce should undertake an outcome analysis of the important schemes implemented to boost gems and jewellery from an economic, trading and revenue perspective. All inverted duty structures, transaction costs, related party transactions, re-export transactions and facilitation measures need to be carefully reviewed before designing an effective promotional scheme,” the report said.

The import of gold, jewellery and related items increased from Rs 3.50 lakh crore in 2010-11 to Rs 3.81 lakh crore in 2014-15. Export of similar goods also increased from Rs 1.98 lakh crore in 2010-11 to Rs 2.53 lakh crore in 2014-15.

It said the gems and jewellery sector was last audited in 2008, however, most of the improvements recommended by the audit were not achieved.

It also criticised the 20:80 scheme brought out by the previous government which could not stop the surge in import of gold jewellery.
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