M K Damani, president of the Bombay Bullion Association, has said the Union government's move to liberalise imports of gold by non-resident Indians (NRI's) would not have much effect on prices of the yellow metal.
He said the increase in the allotment would only save air-ticket charges as instead of two persons bringing five kgs of gold each, only one person would be able to get the same quantity. It would increase the margin of profit to the individual, he added.
The stocks of the precious metal would not increase beyond demand because the government had not yet clarified whether the profit accrued by the NRI in selling the internationally brought gold in the Indian market would be taxable or not, Damani said.
There should be a ready market to sell the ten kgs of gold brought by the non-resident Indians. If kept in the house, he will have to pay wealth tax on Rs 35 lakhs after deducting exempted sum of Rs 15 lakhs, he added.