Kozhikode: Malabar Group Chairman MP Ahmed said that the budget proposal to reduce the import duty of gold to 6 percent is very welcome. Currently, 15 per cent, including Agriculture Infrastructure Development Cess, is levied on imported gold. Finance Minister Nirmala Sitharaman took a bold decision to reduce it to 6 percent. Along with the duty on gold, the duty on silver has also been reduced to 6 percent. That of platinum was reduced to 6.4 percent. It is also a decision in the right direction. He also said that he appreciates the Finance Minister and the Central Government in this regard.

A significant reduction in import duty is a long-term requirement in the gold jewelery sector. MP Ahmed also said that the decision to reduce the duty by 60 per cent will help to significantly reduce gold smuggling, which has become a threat to India’s economy. Smuggling has become less attractive as duties have been reduced. At today’s rates, one kg of gold would have to pay a duty of Rs 9.82 lakh. He also stated that with the announcement of the budget, it has reduced to 3.93 lakh rupees.

Domestically, there will be growth in organized jewelery business as the inflow of smuggled gold is controlled. As part of that, the government will get more revenue in the form of GST and income tax.

The jewelery sector is expecting that following the reduction of import duty, there will be measures to control the illegal gold trade. The government should be ready to take strict action against those who evade GST. MP Ahmed said that tax evasion can be completely prevented if digital technology is used effectively.

The first budget of the third Narendra Modi government is welcome. Emphasis given to skill development and education of the youth for agriculture allied sectors and elimination of unemployment is commendable. As the economic survey shows, the growth in GDP will reflect in all areas of people’s lives, Ahmed said. Acting against tax evasion is the responsibility of the public, media and officials. He added that it is the duty of every citizen to pay tax correctly to the government.