INDIA July 12 2017 3:43 PM

MUMBAI (Scrap Register): With the new sales tax on Gold implemented on July 1, the Gold imports during June in India, ahead of the new tax implimentation has increased by about three fold as the jewelers and bullion dealers have started to refill the stock with the increase in retail demand.

The Gold imports during June were estimated to increase to about 75 tons when compared to the 22.7 tons in the corresponding period last year. The imports in the initial half of this year were seen to increase by about 161 percent from the previous year to 514 tons.

“Demand was higher than normal in June as some consumers advanced buying to avoid paying higher tax,” as per Sudheesh Nambiath a senior analyst with GFMS. The new sales tax has been increased to 3 percent from 1.2 percent. 

During July, the Gold demand in the country is usually low, as it is not a festive or marriage season and also during this period farmers starts sowing. It is estimated that the Gold imports during July will be lower which will have an impact on the global prices, as India is one of the biggest consumer in the world.