Gold duty hike will create more Dawoods: Jay Narayan Vyas

SURAT: Taking a jibe at the 2.5% hike in gold import duty, budget analyst and politician Jay Narayan Vyas said that the hike from 10% to 12.5% will not dent gold consumption, but will surely see many more Dawoods in the making.
Invited by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to speak at its post budget analysis programme — Budget Ho To Aisa — on Sunday, Vyas said India has the highest consumption of gold. “Indian women won’t stop purchasing gold despite the government increasing its import duty. But the hike will increase rampant gold smuggling in the country,” he warned.
At 23,000 tonne, India has the highest gold holding followed by China at 16,000 tonne, while America holds 8,800 tonne. India manufactures about 30% of the gold jewellery sold across the globe.
“Dr Swaminathan has said that the country can live without gun, but not without food. In the last three years, pulses production has increased from 275 million tonne to 283 million tonne. If we want to increase farmers’ income, then we have to achieve agricultural growth rate of 18% per annum. At present, the agriculture growth rate is less than 2.50%,” said Vyas. "This is first such budget without figures and targets," he said, adding that ironically when the government wants to make India a five-trillion economy, it has ignored the burning issues.
However, he also appreciated the budget for taking some bold initiatives like the Mudra loan to women folks. He said the stand up India scheme for the youth is also an excellent move. “We want excellence in education. Indian engineers have the biggest contribution towards making America the superpower of this world. We have to focus on our education system and stop our talent from flowing outside,” Vyas added.
Speaking at the same event, leading tax consultant Mukesh Patel lauded the government for the steps it has taken for taxation. "Now we have come under the world-class tax administration. The e-assessment system proposed by the government is really revolutionary,” he said.