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Need For Reduction In Gold Jewellery Tax

Collection Of Gold Ornaments Displayed In jewelry Shop - Representing Gold Tax Concept.

Gold As an Important Asset

In India, for centuries, gold has been considered as a source of savings for unexpected financial hurdles. Gold jewellery that adorns an Indian bride is given by her parents to support her during times of need. Decades ago, when women were not allowed to go out from their homes, gold jewellery was considered as an essential asset given to daughters in marriage. Till now, the common man in India believes gold as a valuable asset that will help him during testing times.

The unpredictable surge in the price of gold has kicked away the common man from investing in gold. The rise in unpredictable higher price has affected the jewellers also. It has been a blow on their business because it turned away customers who wanted to invest in gold by paying a share of their income every month. Jewellers believe a reduction in the gold jewellery tax will bring timely relief to their business and support demand for gold once again.

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Improving Gold Jewellery Business

The rising price of gold must be considered as a crisis in the jewellery business also. Reduction in the import duty will only help the business to breathe in relief. 12.5% of import duty and 3% of GST have choked the gold jewellery business to the extreme. Reasonable reduction in the gold jewellery tax will help the common man. Besides, if the income tax is reduced, it can even promote more spending on the purchase of gold jewellery items. Announcing some reasonable changes in the tax sector will only help the gold industry to revive. Small scale gold artisans are also affected by this sudden surge in prices. Earlier, goldsmiths ran their small scale business from home. Common people approached them for making jewellery for their family, and this brought in some work for them to earn their monthly wages.

Demand For Gold Jewellery

Even though a common man wants to adorn his family with gold jewellery, the higher prices turn him away from his gold purchase. Unbelievable increase in the price of gold as a precious metal has slashed the need to purchase gold jewellery. The slow down faced by the Indian economy may also be the reason for the increase in gold jewellery tax. Despite the demand to buy gold as saving at home, unemployment and underpaid jobs erase the wish to invest in gold for unexpected medical expenses or unplanned educational expenses.

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