Gold prices in Dubai inched higher by a few Arab Emirati Dirhams (AED) during the morning trading session on Monday, March 11. The price of one gram of 24-carat gold, the purest variety of the precious metal, went up by Dh 1.5 or Indian Rupee (INR) 33.45. According to Gold and Jewellery Group’s data, its price stood at Dh 227.75 or Rs 5,079.97 per gram. The cost of the 22-carat variety also rose by Dh 1.5 or per gram. It traded at Dh 211 or Rs 4,698.02. With a similar upward push in its price, a gram of 21-carat gold traded at Dh 204.25 or Rs 4,555.91. For one gram of the 18-carat variety, the price jumped by Dh 1.25 or Rs 27.88. It stood at Dh 175 or Rs 3,903.56.
Gold prices in Dubai are one of the most competitive in the world. This is largely due to the easygoing taxation policy of the UAE government. They have not levied any charges on purchasing raw gold materials such as gold bars. All other gold articles in the Middle Eastern country attract a value-added tax of 5 per cent. This is a rather minimal tax rate. By comparison, India applies multiple taxes, including import duty, GST, Agriculture Infrastructure Development Cess, and TDS on physical gold.
The price of gold jewellery is even lower for tourists in Dubai. They can avoid paying the VAT just by declaring they are tourists with foreign passports. The price of gold items can also be brought down by bargaining on the making charges. The availability of cheap labour in Dubai means that there is a good margin to negotiate on this charge.
Dubai’s gold market offers more favourable purchase rates compared to other countries. However, importing the precious metal to India is deemed disadvantageous. The Indian population’s affinity for gold has been observed to have detrimental effects on the country’s balance of payments. To address this issue, the Indian government has implemented several levies to restrain imports from Dubai. A social welfare tax and additional import duties are imposed on gold transactions exceeding the permissible limit, thus increasing costs for individuals seeking to profit from the purchase and resale of the precious metal in India.
Read all the Latest Business News here
Comments
0 comment