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Dubai has earned the moniker of the ‘City of Gold’ due to its gold markets.
The United Arab Emirates does not tax raw materials like gold ingots or bars.
The price of gold in Dubai increased marginally on Thursday, April 13. An ounce of gold moved up by Dh 40.37 or Rs 901.37 to Dh 7,409.73, which is equivalent to Rs 1,65,365.60. One gram of 24-carat gold, which is the purest variety of the precious metal, rose by Dh 1.50 (Rs 33.47) to reach Dh 244.50 (Rs 5,456.47) in the morning trading session.
The price of one gram of 22-carat gold also increased by Dh 1.25 to Dh 226.25 or Rs 5,054.76. In Dubai, the price of precious yellow metal is influenced by the international market. The data on US inflation has led to cheer among investors and a slight increase in gold prices.
The price of one gram of 21-carat gold stood at Dh 219.00 or Rs 4,887.48, according to the Dubai Gold and Jewellery Group. The same amount of 18-carat variety is priced at Dh 187.75 or Rs 4,190.09.
The United Arab Emirates does not tax raw materials like gold ingots or bars. Further, it levies only a 5 per cent value-added tax (VAT) on jewellery and other articles. This is in contrast to India, where gold is subject to multi-tier taxation.
Dubai has earned the moniker of the ‘City of Gold’ due to its gold markets. The Gold Souq, Meena Bazaar and other markets in the city provide consumers with a wide range of exquisite jewellery designs. These markets also follow international pricing, and give buyers a uniform price.
A must-visit destination for every gold lover, Dubai also imposes low making charges. This is because the easy availability of cheap labour in the city has led to a broader bargaining margin in terms of making charges.
A huge amount of gold coming in from abroad can cause an unfavourable balance of payments. This is especially applicable to India, which imports most of its gold needs.
The central government has imposed a limit on the amount of gold an individual can bring to the country from Dubai. Bringing in an excess amount of the precious metal will invite several levies.
The government has also imposed several taxes and surcharges on the precious metal. The authorities impose Goods and Services Tax, import duty Agriculture Infrastructure Development Cess and TDS on physical gold. The move has been taken to ensure that India’s economy remains resilient in the face of economic shocks.
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