Smuggling may rise if customs duty on gold not lowered, say experts

July 27, 2014

Mumbai, Jul 27: Jewellery industry has expressed apprehensions that the government's decision of not lowering customs duty on gold from the current 10 per cent may give rise to activities in the grey market.

Gold smuggling copy
Industry experts said that the decision may stoke smuggling of the precious metal.

"This decision of not lowering the customs duty will create the problem of raw material availability. The raw material availability will go out of control and the premium on gold will again rise. It will also give rise to smuggling activities," All India Gems and Jewellery Federation (GJF) chairman Haresh Soni said here.

The premiums on gold is currently ruling at USD 6-10 an ounce in the domestic market, he said.

"These negative reports will affect the market and the premiums on gold will go up immediately," Soni pointed out.

He said the rising activities in the grey market will cost revenue loss to the government.

Echoing the view, Mumbai Jewellers Association Vice President Kumar Jain said the domestic jewellery sector, which give direct and indirect employment to about two crore people, are struggling and the manufacturing has been hit due to government policies.

"The jewellery sector is struggling and is manufacturing is impacted due to various government policies. In June the import was around 105-107 tonne easing the situation a bit. However, with Centre's decision, stock crunch in the industry will arise again," Jain added.

Gem and Jewellery Export Promotion Council Chairman Vipul Shah said industry players have been demanding the lowering of customs duty to two per cent since a long time as the CAD has been brought under control.

There have been demands for reduction of Customs duty to 2 per cent on the precious metal as the Current Account Deficit (CAD) is under control and the imports declined to 638 tonnes in 2013-14, from 845 tonnes in the previous fiscal.

In 2013, the government had hiked the Customs duty on gold in phases to 10 per cent to control gold import and to bring down the CAD.

The government and the Reserve Bank also imposed other restrictions on shipments, including linking of imports to exports, the 80:20 scheme, to prevent outgo of the foreign exchange, adding to instances of smuggling.

Through import curbs, the CAD has been brought down to USD 32.4 billion or 1.7 per cent in 2013-14.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 8,2024

dengue.jpg

Mangaluru, May 8: The health officials in Dakshina Kannada are concerned over the increase in dengue cases in the rural areas of the district. They've seen 108 cases since January, compared to 45 last year. 

Dr. Naveen Chandra Kulal, who works on controlling diseases spread by insects, says humidity makes mosquitoes breed more.

People storing water in pots and drums during summer also make more mosquitoes, he added. 

In Lingappayyakadu village near Mulky, a survey found people store lots of water because they don't have regular drinking water. Dr. Kulal says this water becomes a place for mosquitoes to breed if containers aren't closed properly.

Dengue cases are also rising in Bengaluru, Mysuru, and other districts, he said. Even though there haven't been big groups of dengue cases in Dakshina Kannada yet, the health department is trying hard to stop it from spreading. They're doing things like teaching people how to prevent dengue and getting rid of places where mosquitoes can breed.

So far this year, Dakshina Kannada district has only had 16 cases of malaria. Dr. Kulal says many of these cases were among workers who came from other states to work on building sites.

Dr. Thimmaiah HR, who works for the health department, says if people have a fever, they should go to the nearest clinic or hospital. He also says they should get tested if they have symptoms of dengue or malaria and be careful about the hot weather.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 7,2024

damudupi.jpg

Udupi: Udupi became the second city on the Karnataka coast after Mangaluru to launch water rationing, a senior official said on Tuesday.

Commissioner of the Udupi City Municipal Corporation Rayappa said that the rationing system will come into force from Wednesday and will continue till the water in the reservoir reaches comfortable levels.

The dam built across the Swarna river at a place called Baje, which is the only source of water for Udupi city, recorded 3.25 meters of water as against the top level of 6.30 meters.

The decision of water rationing will be reviewed periodically until the reservoir regains its fullest levels, the official said.

The Mangaluru City Corporation resorted to water rationing on Saturday following declining water levels in the reservoir built across the Nethravati river at Thumbe. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 6,2024

Mangaluru, May 6: A five-year-old girl from Arendur village of Siddapura taluk of Uttara Kannada district died of Kyasanur Forest Disease (monkey fever) recently.

As her health deteriorated, she was admitted to the KMC Hospital in Mangaluru, where she failed to respond to the treatment and died on Friday night.

It is learned that the KFD is slowly spreading to the newer areas of coastal and malnad areas of Karnataka

According to officials, KFD spreads due to bites of ticks that generally survive on monkeys. This tick bites humans which causes the infection. Humans also contract the disease by coming in contact with cattle bitten by ticks.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.