New Year brings with it splendid new opportunitiesJanuary 4, 2016 10:46
Indian expats still fuming over Gold tax
The Gulf has a large population of Indian expats but when they return to India on vacation they are faced with something they shouldn't have to pay
July 31, 2012 11:18 by kippreport
Considering the enormous population of Indian expatriates residing in Dubai and all over the gulf, a rule that was re-enacted in April continues to frustrate many as they return back to India on their Summer break; only to be stumped at the airport.
The Indian community is the largest nationality of expatriates residing in Dubai and many are in fumes about having to pay a tax for their jewellery.
The Gold Duty Tax may well be affecting the 1.3 million Indian nationals living in the Middle Eastern city and other parts of the region and they are trying their utmost to exterminate it. The large population that works in the UAE may have to risk leaving their jewellery behind or with Dubai Airport officials or face paying the tax in India.
The Gold Duty is not a tax imposed when buying gold nor will it necessarily affect those with lavishly expensive jewellery but rather it would mean that those traveling would have to pay a tax on their wedding rings or any other jewellery they may be carrying.
Women, under the currently imposed standards, are allowed gold valued no more than AED1,331 (20,000 rupees) while men are allowed no more than 10,000 rupees.
This usually equals out to six to seven grams for women and three to four for men but according to Vayalar Ravi, the overseas affairs minister, an average Indian woman wears at least 25-30 grams of jewellery and that they should be allowed 200 grams.
A sign is in place at International airports, yet the rule goes unheard by many travelers. Some have chosen to leave their jewellery behind with airport officials in hopes that they would keep it safe; all this to avoid paying a large fee that they feel is unjustified.
Many are in high hopes that the law will soon be changed particularly since many appealed to the prime minister after which he subsequently assured them that the decision would be held for reconsideration.
He also added, to the glee of many, that the Finance Ministry would be given direction to abolish the current rule in favor of a system based on quantity instead of the price of gold.
Indian Nationals will continue to pressurize the government to change this rule and while an assurance from the PM is a ray of hope to some, others wait for an official notice to be announced.