Gold sales are suffering considerably for this part of the year. Traditionally gold sales between November to January brought in upto 40 per cent of the annual sales. However, since the heavy duties on gold have been raised from 1 per cent to 4 per cent by Indian customs, and the prices for gold have more than doubled, customers will be forced to pay high import duty or not buy gold at all.
Gold trade in Dubai has hit a major slump while all other retail sectors such as fashion, F&B and automotive have picked up considerably. Despite several appeals to authorities to revise the new policies, there has been no action.
Some retailers believe the demand for physical gold has skyrocketed and the trend will soon catch on.
At present, heavy duties are imposed on Indian passengers carrying gold valued at more than Rs.1000 (Dh 700), by men, and Rs.20,000 (Dh 1700) for women.