As a result of the CEPA agreement between India and the United Arab Emirates, we export more goods there.
The Emirates is also benefiting from this.
One thing the Indian government failed to address in this deal was silver.
At present import duty of 15 percent is levied on import of silver.
Under this agreement, the import duty on imports from the UAE is only seven percent.
Due to this, people who have jewelry industry in India have started importing more silver from there.
The agreement stipulates that seven per cent will be reduced to zero over the next eight years.
So far the tax loss to the Government of India from imported silver is about 63 thousand crore rupees.
The loss will further increase if this tax is phased out as per the agreement.
So the Government of India has decided to negotiate with the United Arab Emirates in this regard.
UAE does not produce silver. But realizing the demand they import and re-export silver. UAE earns foreign exchange to a large extent through this.
Comments
Post a Comment