Are you considering buying gold and wondering whether it is cheaper to purchase it in Dubai or India? Well, the answer is not as straightforward as a simple “yes” or “no.” There are several factors that come into play when determining the cost of gold in these two countries.
Firstly, let’s take a look at the current rates of gold in Dubai and India. As of September 2021, the price of 24 karat gold in Dubai is around AED 220 per gram.
In comparison, the same amount of gold in India costs around INR 4,800 per gram. At first glance, it may seem like purchasing gold in Dubai is more affordable. However, there are other factors to consider.
One significant factor that influences the price of gold is taxation. In India, there is a Goods and Services Tax (GST) on the purchase of gold.
The GST rate varies depending on the state you are buying from but can range from 3% to 5%. In addition to this tax, there may also be additional charges such as making charges and wastage charges that can increase the overall cost of purchasing gold.
On the other hand, Dubai does not impose any value-added tax (VAT) on purchases made within its borders. This means that you can buy gold without worrying about paying additional taxes or charges.
Another factor to consider when comparing prices between Dubai and India is the quality and purity of the gold being sold. Gold sold in Dubai is known for its high purity levels as it typically comes from refineries located in Switzerland. In comparison, Indian-made jewelry may have lower purity levels due to mixing alloys to create different colors or designs.
Additionally, when buying gold jewelry in India, you have a wider variety of designs and styles available compared to those found in Dubai’s markets.
In conclusion, while it may seem like buying gold in Dubai is cheaper than purchasing it in India, there are several other factors to consider. Taxes, charges, quality, and design options all play a significant role in determining the final cost of gold. It is essential to do your research and compare prices before making a purchase decision.
To sum it up, Dubai may have cheaper gold rates due to the absence of taxes and charges. However, Indian-made jewelry offers more variety when it comes to designs and styles. Ultimately, the decision depends on your priorities and preferences.