The government is considering the possibility of ending the controversial scheme 80:20 to import gold, partly in an attempt to ease restrictions on imports of the yellow metal which led to an increase in smuggling. The program started in July last year to check the rising current account deficit.
Sending a signal view to the general elections, Finance Minister P. Chidambaram has been purported to the government may in late March review existing restrictions on imports of bullion.
Although that a review held under the Government ensuring strong grasp on the current account deficit (CAD), the willingness to revise the restrictions came as welcome news for the jewelery sector.
Congress President Sonia Gandhi has written letters to the concerned Ministries of Commerce to reduce the gold import duty on jewelry traders demand, earlier last week.
Meanwhile, Finance Minister P Chidambaram said on Monday that the Centre will review certain restrictions on the import of gold, but only when it has a firm grip on CAD.
“I’m sure that by the end of this year (fiscal) we are able to revisit certain restrictions on the import of gold, but I do only when we are absolutely sure we have a firm grip on the current account deficit, “he said.
Official said the bill has proved to be despite being a major obstacle for importers adverse fallout has been an increase in the smuggling of gold, which has risen at the rate of 1-3 tons per month.
An address of the official revenue intelligence said the during April and November, 206 people were arrested, a jump of more than 400 percent year-on-year, while 576 cases worth Rs 211 million rupees were full, a jump of more than 300 percent year over year.
Reported News Source: Financial Express