Commodity Online
RAJKOT/MUMBAI: This is one demand gold traders in India have been seeking from the Central government when the Budget time comes. This time also they have done the same.

Bullion  traders want permission to directly import gold. In Mumbai, the Bombay Bullion Association (BBA) has recommended the government to allow traders to import gold directly and do away with any restrictions on their imports.

Recently, the Centre had allowed Gem and Jewellery Export Promotion Council, Diamond India Ltd and such other bodies of exporters to import gold on behalf of their members.

While these agencies have not yet begun full-fledged import of gold, traders say that they have to buy gold from banks and they charge a premium when the demand is high.

In the past, the government had discussed the possibility, freeing gold imports and exports. But the Reserve Bank of India had objected to it arguing that gold is a virtual currency and freeing import and export of gold will amount to the virtual convertibility of currency on capital account for which India is not yet ready.

BBA has also recommended the government to remove value addition norms for the export of gold and gold should be allowed to export in the same form on which it has been imported. The trade body also said that central sales tax on gold should be removed.

Meanwhile, gold imports have slowed down as the local market has been quoting at a discount consistently and lack of demand because of a slack season and higher prices.

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