UAE: Here’s why Indian expatriates and tourists are buying gold in Dubai – News

Jewelry prices in UAE are almost 15% cheaper, says expert

With the start of Diwali celebrations in the UAE, gold jewelery purchases in Dubai started picking up in the days leading up to the festival. Indians have always shown an affinity for gold more than any other precious metal. They have also long preferred to buy the yellow metal in the UAE rather than in India due to the high purity of the gold sold here.

The Dubai Gold and Jewelry Group, which attends all of the city’s major festivals, claims that “35 percent of Dubai’s trade is in gold and jewelry products.”

Abdul Salam KP, Deputy Chairman and Deputy Chairman, GED Malabar Group said, “Dubai is the place to buy gold and jewelry as it offers the best prices and the greatest variety. No matter where in India the jewelry is made, it will come Dubai. We always say, ‘Dubai is where any Indian buys her/his jewelry’ (regardless of its Indian origin).”

“If you go to South India…for example, in Chennai, you get South Indian style jewelry. If you go to Delhi, you get North Indian (design) jewelry; if you go to Mumbai, you get Will get design catering to western india. But if you come to dubai you can get all styles of Indian jewelry be it kerala or kashmir with best price. Jewelry prices in dubai are almost 12 to 15 dollars in dubai Cheaper by a penny.”

Experts Explain Passenger Limits

However, tax experts say that if you plan to bring gold jewelry to India, you need to proceed with caution.

Explaining the restrictions imposed by the Central Board of Indirect Taxes and Customs (CBIC) on Indian passengers returning to India (after more than one year), Pankaj S Jain, Managing Director, AskPankaj Tax Advisors, UAE, said, “For male travelers who have lived abroad for more than one year, they can Gold jewellery, up to 20 grams in weight and up to Dh2,500 (Rs 50,000) in value, is allowed duty-free. For female travellers, the above limit is doubled to 40 grams up to Dh5,000 (Rs100,000) in value.”

Subhash Chand Jain, managing partner of RSA Legal Solutions, which works closely with the UAE, said: “The ‘duty-free’ allowance does not allow the import of gold jewellery. The ‘duty-free’ allowance includes ‘used personal effects,’ which is usually understood to include jewellery. However, Indian Tax authorities often clarify that ‘used personal effects’ do not include jewelry.

He added, “Import of gold (including ornaments) is permitted only in limited circumstances. Any passenger of Indian origin or holder of an Indian passport coming to India after staying overseas for at least six months may import a maximum of one kilogram of gold (including ornaments).” ) upon payment of duties. As a matter of practice, old jewelry of nominal value normally worn by passengers may be permitted on arrival.”

“It was explained that the duty on gold bars was recently increased from 7.5% to 12.5%.”

“Adding Agriculture and Infrastructure Duty (AIDC) of 2.5%, the total tariff amounted to 15%. In addition, an additional 3% Goods and Services Tax (GST) was applied, resulting in a total import duty of 18.45%. Since India in 2022 Gold imports in May 2019 were up 790% year-on-year, so tariffs were added,” Jain added.

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