Thu, 25 Apr 2024
08:48:33
First Time:
21 Jun 2013
12:50:27
Sri Lanka impose 10% tax on gold imports
Jun 21, 2013 (SLBO) - Sri Lanka had imposed a 10% tax on gold imports with effective from 21 of June 2013, a treasury officials said. Accordingly the governmetn has imposed a 5% customs duty and another 100% surcharge for the duty (another 5% of the imprt value) totaling to 10% on Gold imports.
Speaking on the new tax the treasury official told it is the first time ever that Sri Lanka had imposed tax on gold. The new tax is seen as catalys to reduce gold imports and to boost prices of gold in the country while there were several reports that outlined Sri Lanka Registered finance companies' and banks have a larger exposure to gold in their portfolios.
Meanwhile there had been an increase in several cases where people reportedly trying to smuggle gold out of the country and in to the country from airport during last few months.
Sri Lanka's gold imports surged to 100 million US dollars in the first four months of the year from about 150 million for the full year 2012 according to the official data from the Central Bank of Sri Lanka.
Gold prices fell to a three-year low on Friday and was in danger of recording its biggest weekly drop in 30 years after the US Federal Reserve said it would wind down its bullion-friendly stimulus later this year. Spot gold - down nearly 9 percent this week - dropped for the fifth straight session, while Comex gold futures also declined over 1% to their lowest in three years.
The market movement in tumbling of global stocks and commodity prices such as gold came in to effect after the speech by US Fed Chairman Ben Bernanke who that stated on Wednesday the American central bank would taper its $85 billion monthly bond buying programme as the U.S. economy was recovering strongly, ending purchases around mid-2014 if economic growth held up.
Sri Lanka's move to impose tax is supposed to be followed by india's latest decisions on early June this year in which Indian government increased the import tax on refined gold to 8% from 6% and on gold ore and intermediate products to 7% from 5%.
The largest gold buyer in the world India imports about 1200-1600 tonnes of gold annually. The country's gems and jewellery market is pegged at around Indian Rs 1,780 billion while in Odisha, the jewellery trade is estimated at Indian Rs 50 to Rs.60 billion.
Speaking on the new tax the treasury official told it is the first time ever that Sri Lanka had imposed tax on gold. The new tax is seen as catalys to reduce gold imports and to boost prices of gold in the country while there were several reports that outlined Sri Lanka Registered finance companies' and banks have a larger exposure to gold in their portfolios.
Meanwhile there had been an increase in several cases where people reportedly trying to smuggle gold out of the country and in to the country from airport during last few months.
Sri Lanka's gold imports surged to 100 million US dollars in the first four months of the year from about 150 million for the full year 2012 according to the official data from the Central Bank of Sri Lanka.
Gold prices fell to a three-year low on Friday and was in danger of recording its biggest weekly drop in 30 years after the US Federal Reserve said it would wind down its bullion-friendly stimulus later this year. Spot gold - down nearly 9 percent this week - dropped for the fifth straight session, while Comex gold futures also declined over 1% to their lowest in three years.
The market movement in tumbling of global stocks and commodity prices such as gold came in to effect after the speech by US Fed Chairman Ben Bernanke who that stated on Wednesday the American central bank would taper its $85 billion monthly bond buying programme as the U.S. economy was recovering strongly, ending purchases around mid-2014 if economic growth held up.
Sri Lanka's move to impose tax is supposed to be followed by india's latest decisions on early June this year in which Indian government increased the import tax on refined gold to 8% from 6% and on gold ore and intermediate products to 7% from 5%.
The largest gold buyer in the world India imports about 1200-1600 tonnes of gold annually. The country's gems and jewellery market is pegged at around Indian Rs 1,780 billion while in Odisha, the jewellery trade is estimated at Indian Rs 50 to Rs.60 billion.
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