Ministry of Finance (MoF) on Thursday made a request to the Ministry of Commerce and Supplies (MoCS) for ending some three months long ban on gold import, but the latter is dilly-dallying in this regard. [break]
“We had imposed ban on gold imports on the grounds that the trade balance had been in huge deficit then. We will take a decision to lift the ban on import of gold at an appropriate time after weigning up its pros and cons on the economy,” Mahato told Republica.
However, Mahato didn´t disclosed the date on which the ministry would take such a decision to lift the ban on import of the yellow metal.
All the indications are that the MoCS can impose or lift the ban on gold by invoking the Article 3 of the Export Import (Control) Act1999.
Amid deepening shortage of gold in the domestic market, the MoF had taken the initiative to lift the ban. It follows the new financial ordinance, which jacked up the import duty to Rs 1,000 per 10 gram of gold.
Price of gold in domestic market shot up to a record Rs 34,035 on Thursday disproportionate to the international price due mainly to paucity of gold. The price remained stable on Friday and Saturday as well.
Officials have expected that the fresh hike in the import tariff is expected to discourage undue import of gold.
The government had imposed the ban on gold import on September 3, 2010 after the balance of payment ballooned to a new high. In 2009/10, gold import had crossed Rs 41 billion.
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