From the upcoming budget 2020, World Gold Council expects a cut in the customs duty on imports of gold. This is what was iterated by the organisation's CEO.
As per a leading business dailies report, roll back to the earlier customs duty rate of 10% from the current 12.5% will also crackdown illegal; gold trade and at the same time spur the demand for the precious yellow metal in the country which in the year gone by has provided a massive return of over 20%.
"I would be pleased if they (government) in the upcoming Budget reverse the most recent hike (on gold import duty). To reverse that would be a great gesture. The biggest benefit will be reduction in amounts of gold transacted illegally," he said.
Having higher duties is "reverse incentive" that is "bizarrely penalising" the "good guys" and driving people underground. A cut in Customs duty will benefit the market as a whole and deliver social best practices, he said.
"I would still try and find the money elsewhere as higher duties encourage smuggling, drive activities underground. It (having higher duties) does not generate an environment where gold is seen as a financial asset," he said.
This is being expected even amid huge shortfall in revenue collection of the government and GDP slowing to 11 year low of nearly 5%.