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|February 28, 2001||Feedback|
Gold prices crash as import duty is reduced
The reduction in import duty on gold announced in the Union Budget on Wednesday set off an immediate crash in the prices of the yellow metal. The prices were down a hefty Rs 170 at Rs 4,290 per ten gram.
The bullion merchants welcomed the budgetary proposal which was in line with their demand for a reduction in import duty from the existing Rs 400 to Rs 250 per ten gram to arrest the flow of smuggled gold into the country.
However, the jewellers were upset by the duty reduction claiming that the move had adversely impacted their business.
Soon after the announcement of the cut in import duty, jewellery shops wore a deserted look in New Delhi. The jewellers, however, stuck to old rates.
"We are sticking to old rates today," said a Delhi-based jeweller.
A leading gold merchant, Ravi Jalan, said the cut in import duty was a step in the right direction and would curb the flow of smuggled gold into the country.
He said now the import duty on gold in our country would be at par with other neighbouring countries.