The UAE gold jewellers are gearing up not only for the festive season but also to handle excess demand from India after the implementation of the Goods and Services Tax (GST) of three per cent from July 1.
Buying gold jewellery in India is now more expensive than in the UAE - even after the adoption of five per cent VAT in January 2018. Customers need to pay a whopping 14 per cent tax on gold purchases in India.
Shamlal Ahamed M.P., managing director - international operations, Malabar Gold & Diamonds, said Indian expatriates in the UAE enjoy 13 to 14 per cent difference in gold prices between here and in India.
"GST has been set at three per cent. In addition, there is five per cent GST on making charges. Earlier, it was one per cent excise and 1.2 per cent VAT. When you add 10 per cent customs duty, there will be a difference of around 13 to 14 per cent between gold prices in India and the UAE," he said.
Ahamed explained that on July 1, the rate in Kerala for one sovereign was Rs22,536 whereas in Dubai, it was only Rs19,880 - a difference of Rs2,656. When the cost is worked out, there is a 13 to 14 per cent price advantage at the retail level for Indian shoppers in the UAE. For a consumer, it is a sizeable difference, especially when gold prices go up.

source: Khaleejtimes