WGC welcomes electronic gold receipts move

NEW DELHI: While the reduction in custom duty on gold from 12.5% to 10% is a step in the right direction, Somasundaram PR, Regional CEO, India at World Gold Council says the hike in the agriculture infrastructure and development cess has brought the overall duty to 15%, same as before. High taxes will impede efforts to make gold an asset class, particularly at a time when gold prices have risen globally. Moreover, the thriving grey market has diluted efforts to reduce cash transactions and penalises organised and compliant players. He however went on to add the conversion of physical gold to electronic gold receipt not attracting any capital gains was a positive one. This, he noted, provided an overall digital boost to the industry and promoting investments in electronic equivalent of gold. Directionally, this year’s budget can be considered positive for the industry.