India's tax increase on Gold.
leothelyon
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Taken from Kitco's News
According to Bloomberg News, India’s government will tax gold bars and coins and platinum at 4%, starting April 1, up from 2% set in January. There was no change in the tax on silver. Along with China, India is one of the top two consumers of gold bullion.
When they raised it to 2% back in January from ?, Gold and Silver actually rose $144 and $4.82 than another $39 and $3.63 in February.
Do you think there will be a buying frenzy from India to beat the April 1st deadline on the tax increase?
According to Bloomberg News, India’s government will tax gold bars and coins and platinum at 4%, starting April 1, up from 2% set in January. There was no change in the tax on silver. Along with China, India is one of the top two consumers of gold bullion.
When they raised it to 2% back in January from ?, Gold and Silver actually rose $144 and $4.82 than another $39 and $3.63 in February.
Do you think there will be a buying frenzy from India to beat the April 1st deadline on the tax increase?
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
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Comments
<< <i>Taken from Kitco's News
According to Bloomberg News, India’s government will tax gold bars and coins and platinum at 4%, starting April 1, up from 2% set in January. There was no change in the tax on silver. Along with China, India is one of the top two consumers of gold bullion.
When they raised it to 2% back in January from ?, Gold and Silver actually rose $144 and $4.82 than another $39 and $3.63 in February.
Do you think there will be a buying frenzy from India to beat the April 1st deadline on the tax increase? >>
I wonder how many transactions are cash based to avoid any taxes. With higher taxes the number of cash transactions will only increase.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
As for avoiding the tax, it is an import tax on gold brought into the country. The only way to avoid the tax is smuggling, which for 4% becomes a high risk venture if caught. I am sure the airport checkpoints have all been trained to look for gold. That and the probable prison sentences for smuggling are likely to be deterrents. Another factor is that the major importers tend to be jewelry makers, so it is hard to avoid the tax when they are being watched. Also as big companies they have to account for all their gold inventory and taxes paid. Like most taxes, if the rate gets high enough (eg: cigarette taxes in certain states are over 100%), the black market gets bigger, and compliance lower as folks do find a way to game the system, but 4% is not near that point.
I'm sure other countries and other politicians are watching the situation as ideas for new taxes will come to mind. One possibility in the U.S. is requiring a license to sell bullion. "They" are doing it with tax preparers, requiring Federal approval for mom-and-pop operations to prepare taxes. For gold licenses, the plan would be to start off with a small fee for registration so compliance will likely be high. Then raise it in steps, after a list of major dealers is established and cook them like frogs and all the gold dealers "croak."
I wonder how many transactions are cash based to avoid any taxes. With higher taxes the number of cash transactions will only increase. >>
<< <i>I wonder how many transactions are cash based to avoid any taxes. With higher taxes the number of cash transactions will only increase. >>
A visit to any local coin show gives us an idea of the extent of cash transactions. Multiply that by hundreds of coins shows each year.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
“The key message is that it’s not a flash-in-the-pan shift in sentiment, this seems to be something more structural,” Gareth Berry, a foreign-exchange strategist at UBS AG in Singapore said in a March 13 telephone interview. “The psychology around the dollar does appear to be changing and I’m confident that dollar strength will probably continue.”
I’m confident that dollar strength will probably continue.”
"Confident and probably" in the same sentence?
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>The most important take from this news is the view of an increased source of tax revenue. Look for it to spread to other nations, possibly close to home. >>
There is a tax on every other asset--real estate, cars, coins, swimming pools--so why should gold be any different?
Knowledge is the enemy of fear
<< <i>
<< <i>The most important take from this news is the view of an increased source of tax revenue. Look for it to spread to other nations, possibly close to home. >>
There is a tax on every other asset--real estate, cars, coins, swimming pools--so why should gold be any different? >>
In that case why not a sales tax on every stock or bond transfer?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>The most important take from this news is the view of an increased source of tax revenue. Look for it to spread to other nations, possibly close to home. >>
There is a tax on every other asset--real estate, cars, coins, swimming pools--so why should gold be any different? >>
You should read the OP, then the comments. The thread is about increasing taxes on a specific asset over other assets.
As you said, why should gold be any different.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>
<< <i>The most important take from this news is the view of an increased source of tax revenue. Look for it to spread to other nations, possibly close to home. >>
There is a tax on every other asset--real estate, cars, coins, swimming pools--so why should gold be any different? >>
In that case why not a sales tax on every stock or bond transfer? >>
There are fees (taxes) on every stock and bond transaction. Just like there are taxes on money market interest. I hate taxes as much or more than anyone, but thats just the wat it is. Gold is not some special asset that should be exempt. It is no different than steel, aluminum or copper. Dont shoot the messenger.
Knowledge is the enemy of fear