New Delhi
The Central Government has increased the import duty on gold, silver and other precious metals with effect from Wednesday, a move aimed at curbing imports and reducing pressure on the country’s foreign exchange reserves.
According to a notification issued by the Finance Ministry, gold and silver imports will now attract a total duty of 15 percent, up from the earlier 6 percent. The revised structure includes a 10 percent basic customs duty along with a 5 percent Agriculture Infrastructure and Development Cess (AIDC).
The government has also revised customs duty rates on jewellery findings and industrial precious metal imports. Gold and silver findings will attract a 5 percent duty, while platinum findings will face a 5.4 percent duty. Precious metal spent catalysts meant for recycling will attract concessional customs duty of 4.35 percent under specified compliance conditions.
The revised rates came into force from May 13 and are expected to make imports significantly costlier. Industry experts believe the decision could impact jewellery demand and increase domestic gold prices in the coming days.
Following the announcement, gold and silver futures witnessed a sharp surge in domestic markets. Jewellery stocks including Titan and Kalyan Jewellers also came under pressure amid concerns over rising input costs and weaker consumer demand.
