India gold premiums jump to 7-1/2-month high ahead of tax hike

Reuters/Rajendra Jadhav & Nithin ThomasPrasad/06-29-17
Gold premiums in India jumped to the highest level in 7-1/2 months this week as consumers advanced purchases to avoid paying higher tax when a new nationwide sales tax takes effect from July 1.

India, the world’s second-biggest gold consumer, has said it will impose a 3 percent goods and services tax (GST) on gold, up from 1.2 percent currently.

The GST will replace a slew of federal and state levies from Saturday, transforming Asia’s third-largest economy into a single economic zone with common indirect taxes.

While gold demand is usually weak in June, jewellery showrooms in key Indian cities like Mumbai and Kolkata were crowded this week.

Share
This entry was posted in Gold News, Gold Views. Bookmark the permalink.

Comments are closed.