Congress questions logic of overall taxes on gold being effectively halved
The opposition party's remarks came after Kotak Mahindra AMC Managing Director and CEO Nilesh Shah reportedly urged Nirmala Sitharaman to keep a watchful eye on any surge in India's gold import bill in the wake of the customs duty cut and rising international prices.
Congress leader Jairam Ramesh addresses a press conference at AICC HQ, in New Delhi, Friday, May 31, 2024.
| Photo Credit: PTI
The Congress on Saturday questioned the economic logic of the overall taxes on gold being effectively halved in the budget.
The opposition party's remarks came after Kotak Mahindra AMC Managing Director and CEO Nilesh Shah reportedly urged Union Finance Minister Nirmala Sitharaman to keep a watchful eye on any surge in India's gold import bill in the wake of the customs duty cut and rising international prices.
In a post on X, Congress general secretary Jairam Ramesh said Mr. Shah was a very respected name in the financial world and also a member of the Prime Minister's Economic Advisory Council. "Unlike other members who speak on all issues but the economy, Mr. Shah sticks to matters relating to the economy," he said. Mr. Shah's latest comment on gold imports needs to be reflected upon seriously, the Congress leader asserted.
"In FY 2023-24 India's gold imports totalled USD 45.4 billion, rising by almost 30 per cent from the previous year. It is hardly debatable that gold imports add very little to economic growth. Yet, the 2024-25 budget reduced import duty on gold from 10 per cent to 6 per cent," Mr. Ramesh said.
"Combined with the cut in the Agriculture Infrastructure and Development Cess, the overall taxes on gold [including GST] have effectively halved, from 18.5 per cent to 9 per cent. What is the economic logic?" the Congress leader asked.
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