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Business News/ Markets / Commodities/  Import duty on gold, silver findings and precious metal coins increased to 15%
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Import duty on gold, silver findings and precious metal coins increased to 15%

Import duty on gold, silver findings and precious metals increased to 15%

Import duty on gold and silver finds and precious metal coins increased to 15% (Photographer: Zack Seckler/Bloomberg News.)Premium
Import duty on gold and silver finds and precious metal coins increased to 15% (Photographer: Zack Seckler/Bloomberg News.)

The government has increased import duty on gold and silver findings and coins of precious metals coins to 15 percent from 11 percent, starting from January 22, as per a Reuters report. Gold and silver findings are used to produce jewellery. 

An official notification has stated that there will be a 10 percent Basic Custom Duty (BCD) and a 5 percent Agriculture Infrastructure Development Cess (AIDC) on certain imports. It's important to note that this is exempt from the Social Welfare Surcharge (SWC).

This adjustment aligns the duties with those imposed on gold and silver bars. 

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In a notification released on January 22, the Ministry of Finance also increased the import duty on spent catalysts containing precious metals to 14.35 percent from 10.1 percent, the report added. 

The new duty stands at 14.35 percent, comprising 10 percent Basic Custom Duty (BCD) and 4.35 percent Agriculture Infrastructure Development Cess (AIDC). It's worth mentioning that this is with an exemption from the Social Welfare Surcharge (SWS).

The objective is to prevent evasion of duties on gold and silver bars, following a recent uptick in imports of gold findings such as hooks, clasps, and other components used in jewellery crafting, the report said quoting a government official. 

India holds the position of being the world's second-largest consumer of gold, with almost all supplies coming from imports. 

Gold Prices

Gold prices experienced an upward movement during the morning session of trading in the domestic futures market on Tuesday, January 23, influenced by favourable global cues.

In international markets, gold prices saw an increase as the US dollar dipped, with investors eagerly anticipating interest rate decisions from various central banks and a cascade of economic data scheduled for release in the United States later in the week.

As gold is priced in dollars, its weakness is positive for the yellow metal. Besides, the expectations of rate cuts underpin gold prices. In the case of low interest rates, the opportunity cost of holding gold is also lower, making gold more attractive.

Around 10:05 am, MCX Gold traded 0.12 per cent higher at 61,964 per 10 grams.

(With inputs from Reuters and PTI)

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Published: 23 Jan 2024, 11:55 AM IST
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