Gold might be exposed to further Import duty
India has yet again unleashed a Farmer focussed Budget for the Year 2016 – 2017. Agriculture and irrigation have been the focus area’s with emphasis on Healthcare and Education. Talking about the Gold and Jewellery Business, the Finance Minister hinted at a probability of a further increase in the Import duties.This he said keeping in mind the of sharp fall in crude prices and low probability of increase over the next one year, the government may reintroduce customs duty on imported crude, petrol and diesel, which was removed in 2011. The government could increase import duty on gold, since gold imports have increased over the year and has partly contributed to the trade deficit and weak rupee on account of forex outflows. The Government might also opt for Tax Breaks for labor oriented segments within certain industries including Jewellery and Leather.