more-inThe government on Monday said it would review the circumstances under which Premier Trading Houses (PTH) and Star Trading Houses (STH) allegedly earned windfall gains under the 20:80 gold import scheme implemented by the previous government. The previous government had, in May 2014, allowed PTHs and STHs to import gold under the 20:80 scheme, which was earlier restricted only to banks and public sector enterprises. The 20:80 gold import scheme was introduced in 2013 and mandated that at least 20% of gold imported was to be used for exports. “This benefit stemmed from a de facto discrimination in their favour because the expanded 20:80 scheme privileged these STHs/PTHs, who being trades and exporters (of anything and not just gold), and best positioned to take advantage of the scheme.”The new government decided to scrap the 20:80 scheme in November 2014. Thus, it is clear that abolition of 20:80 scheme eliminated undue advantage to PTHs/STHs and import of gold was reduced.”

Source: The Hindu March 13, 2018 15:44 UTC