Shares of gems and jewellery companies dropped sharply after Finance Minister Nirmala Sitharaman proposed to hike import duty on gold.
While presenting the Union Budget 2019-20, Sitharaman said the import duty on gold and precious metals to be raised to 12.5 per cent from the current level of 10 per cent.
In addition, gold sales attract Goods and Services Tax of three per cent. So the total tax weight on gold products will be about 15.5 per cent.
The shock was felt immediately in bullion markets. P C Jeweller shares dropped by nearly 5 per cent to hit a low of Rs 40.35 per share. The stock closed the day at Rs 40.35, down 4.95 per cent.
Tribhovandas Bhimji Zaveri tumbled 3 per cent lower to close at Rs 43.05 per share while government-owned MMTC closed 3.23 per cent down at Rs 23.95 per share. Titan declined by 1 per cent to Rs 1,277.75.
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