Gold industry to glitter

Gold merchants are happy with the move to scrap all applicable taxes and levies on the import of gold.

The Central Bank lifted all taxes on gold imports from March 1 this year in to reduce prices and promote the gold and jewellery industry in the country.

Managing Director Pattakannus Ltd., S.A. Thiagarajah said the decision to do a way with all import taxes is a good move but the full impact of it could be felt only after the Central Bank announces the prices of gold. According to dealers gold prices are expected to drop to around Rs.28,000 per sovereign following the withdrawal of taxes. The current price of a gold sovereign is Rs. 32,000.

Gold prices hovered around Rs.38,000 per sovereign last year due to the drop in the value of the dollar.

"Gold imports by commercial banks and authorised dealers will increase following the removal of taxes", said the Central Bank. (LF)