An apex body of jewellers Tuesday urged the government to do away with gold units in Exchange Traded Funds or impose 25 percent commodity transaction tax on them to safeguard interest of jewellers.
“This was needed to stop the losses suffered by the jewellers with people buying gold from the ETFs,” All India Gems and Jewellery Trade Federation (AIGJTF) chairman Bachhraj Bamalwa told a media meet here.
A person investing in Gold ETFs can hold gold units in dematerialise form. Such transactions are more cost effective and provides liquidity on stock exchanges.
“Now, 25-30 percent of gold imports are shifting to gold ETF investment,” Bamalwa said, adding the jewellers lost 30-50 percent of business since October last year.