JAIPUR: Responding to a letter from Rajasthan Small Industries Corporation (Rajsico) on MMTC’s decision not to sell duty-free gold in the state, Chief Minister Ashok Gehlot has said that he has communicated the matter to the additional chief secretary, industries, who would pursue it.
In the letter, Rajsico chairman Rajiv Arora had written that after MMTC stopped selling duty-free precious metal in the state, exporters are forced to buy it from the domestic market at a higher cost.
Arora also pointed out in the letter that exporters are facing difficulties in meeting export commitments. Rajsico had received a representation from the Sitapura Gems and Jewellery Association in this regard.
Exporters used to buy gold from MMTC, the authorized importer of the yellow metal, without having to pay duty as they are exempted from it. But when exporters buy gold from banks or the domestic market, they have to pay duty. While the duty is refunded to the exporters, they say it blocks the capital which they could have used for other purposes.
