Tuesday, 3rd August 2004 (2707 views)

Tax has been cut on Indian gold sales to help boost the amount of gold shipments to Gujarat.

Traders have predicted that sales will rise after the government cut tax to 0.25 per from one per cent.

President of All Gujarat Bullion Dealers Association Girishkumar Chokshi told Reuters: "Ahmedabad will now regain its prominence as a major gold importing centre."

The area made up almost 35 per cent of India's total gold imports in 2000, but trade moved to Rajasthan when it lowered its duty through various incentive schemes.

"Now there will be a level playing field and the traditional trade relations enjoyed by Gujarati traders will put them in an advantageous position," Mr Chokshi added.

It is thought the move could see gold imports double and higher demand would come from Madhya Pradesh, Maharahstra and northern India.

 

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