Wednesday, 30th November 2005 (3218 views)

Delhi's tax on gold has been lowered to 0.1 per cent in an attempt to win back trade.

The decision to cut Delhi's VAT on gold from one to 0.1 per cent was made following a shift of business from the capital to neighbouring states with lower taxes.

Consequently, several experts have suggested that Delhi will become India's fourth gold hub after Ahmedabad, Mumbai and Agra.

"This move may even help Delhi become a hub for gold buying, for jewellery as well as investment purposes," the general secretary of Delhi's Karol Bagh Jewellers' Association, Rakesh Saraf, told the Business Standard.

The price of gold is currently on an upward trend, with many predicting it will cross the $500 an ounce barrier before the year's end.

It is anticipated that the VAT cut will slash gold prices by around Rs 63 per 10g.

 

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