Economic Survey indicates high tax on gold to continue

Jewellery sector will be most disappointed if no relief comes from Budget, especially after note ban

Economic Survey for 2016-17 has indicated that implicit subsidy for gold is still too high and it mostly goes to the middle class. Market participants say that this indicates that government is looking to have higher tax revenues from gold.

Survey notes that the calculations of implicit subsidies for the middle class, which forms top 40 per cent population, is estimated based on expenditure distribution as per NSS data of 2011-12

LPG subsidy for this class has been estimated at Rs 28,219 crore for 15-16 and for gold it has been estimated at Rs. 10,800 crore which is 0.08 per cent of