In any case, with the reduction of income tax rates and the launch of the Voluntary Disclosure Scheme in the current year, the fiscal stance is clear - remove incentives for generating black money. Hence, gold policy as an important instrument of anti-black money policy loses its significance, in view of the recent Budget.
Fourthly, international experience, especially with Turkey, where conditions are similar, has shown that liberal imports and organised trade in gold benefits the economy, including the external sector. Also, our neighbours in the SAARC region have liberalised and officialised gold imports at nominal duties. These developments make it imperative that we review our policies urgently.