The administration has made a declaration about the reduction of import duties on gold and silver. The new import duties to be levied on gold and silver remained at 7.5 per cent. Earlier, the import duties applicable stood at 12.5%. This will turn out gold and silver low-cost for shoppers at home and make jewels exports more competitive in worldwide zones.
This announcement was made by the country’s finance minister Nirmala Sitharaman as the globe's second chief gold consumer makes attempts to put control over the trafficking of the costly metal. Gold futures declined over 3% after the special declaration by the country’s finance minister.
While presenting the Union Budget for the session 2021-22, she also stated that the customs duties on some of the solar equipment, automobile parts, cotton and raw silk have been augmented. In contrast, the finmin stated that the customs duty on naphtha has been reduced to 2.5%. The minister also relieved the customs duty on steel scrap up to March 2022.
Nirmala Sitharaman also made a proposed infrastructure development cess on certain goods.
The import duty on impure gold has also been slashed to 6.9% as compared to 11.85%. On the other hand, the duty on silver dore bar came down to 6.1% from 11%. The country refines 100-150 tonnes of impure gold per annum.
Colin Shah, chairman of Gem & Jewellery Export Promotion Council, stated, “The reduction in import duty of silver and gold would give the much-needed boost to the sector and help it to move to the next level. In fact, high duty on precious metal had made our exports uncompetitive, leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong or other centres to buy jewellery which was largely impacting the employment as well as business in India.”