NEW DELHI: Associated Chambers of Commerce and Industry of India (ASSOCHAM) said in a statement that gold smuggling is likely to shoot up with government retaining high customs duty on gold imports in current year’s budget.
“In the absence of lower (import) duty, smuggling of the precious material would shoot up. The jewellery sector had been seeking a cut in the import duty, which will increase the supply of gold and also curb illegal imports,” it said in a statement.
The introduction of mandatory PAN declaration on high-value gold purchases will dampen the industry. It also termed the quoting of the PAN (permanent account number) for every purchase of gold jewellery over Rs.1 lakh as “un-workable, especially in rural and semi-urban areas”.
