The result of the Indian government increasing excise on gold and precious metals from 10 to 12.5% recently has experts in the UAE predicting an increase in sales in UAE. They see Indians living there as well as Indian tourists increasing their purchases due to lower gold prices. While the Indian industry feels that the tax hike could dampen retail demand and boost smuggling, retailers in UAE are in high spirits at the possibility of the influx in Indian business.
Karim Merchant, the group CEO and MD, Pure Gold Jewellers, told Arabian Business: “Indians living here and Indian tourists are one of the largest customer bases for the jewelry industry in the UAE. With the import duty in India going up, pricing in the UAE market becomes more attractive to Indian buyers.”
Abdul Salam KP, Group Executive Director, Malabar Group, said: “With the revised duty structure, customers will benefit more than Rs 400 per gram on gold purchases from GCC countries. They also have the additional benefit of a much wider choice from international designs of jewelry.”