India’s Finance Ministry is considering an amnesty program for residents with illicit stash of gold, as part of an effort to crack down on tax evasion and cut its dependence on imports, according to people with knowledge of the matter.
Under the proposition made to Prime Minister Narendra Modi, the government plans to ask people with unaccounted holdings of the metal to declare it to tax authorities and pay levies, penalty, the people said, asking not to be identified citing rules on speaking to the media. The proposal is at an early stage and authorities are seeking feedback from concerned officials, they said.
Consumers who declare their hoard will need to deposit some of the legalized gold with the government for a few years, they said. The administration had planned a similar program last year, the Mint reported on October 30. The tax office had denied any plans for an amnesty then.
Gold has soared almost 30% to a record this year as the pandemic drove demand for havens amid a weaker dollar and low interest rates. With more stimulus on the horizon, Goldman Sachs Group Inc. has said that bullion is the currency of last resort and forecasts a surge to $2,300 an ounce.