Gold climbed almost 30% to a record high this year as the pandemic boosted demand for paradise.
The finance ministry is considering an amnesty program for residents with illicit gold reserves, as part of an effort to crack down on tax evasion and reduce its dependence on imports, people in the know of the question.
As part of the proposal to Prime Minister Narendra Modi, the government plans to require people with unrecorded holdings in the metal to report it to tax authorities and pay levies and penalties, the people said, asking not be identified by citing the rules on how to speak to the media. . The proposal is at an early stage and authorities are seeking comments from relevant officials, they said.
Prime Minister Modi unveiled three state-backed plans in 2015 to attempt to tap the world‘s largest private gold reserve of around 25,000 tonnes held by households and institutions to reduce physical demand and reduce imports by offering people other avenues of investment.
The programs did not generate interest as part of the population did not want to part with their gold, usually in the form of jewelry and worn on special occasions, while others feared being penalized by the tax authorities.
Consumers who declare their treasure will have to deposit some of the legalized gold with the government for a few years, they said. The administration planned a similar program last year, according to a Mint report on Oct. 30. The tax office then denied any plans for amnesty.
Any proposed amnesty comes with many risks, with the Supreme Court ruling that Indians cannot claim an absolute amnesty following criticism that such programs penalize honest taxpayers. A spokesperson for the finance ministry was not immediately available for comment.
Gold climbed nearly 30% to a record high this year as the pandemic boosted demand for paradise in a weaker dollar and low interest rates. With more stimulus on the horizon, Goldman Sachs Group Inc. said bullion is the currency of last resort and expects a hike of $ 2,300 an ounce.
