PriyaPatelTLDR: The Finance Ministry of India has increased import duties on gold, silver findings, and coins of precious metals from 10% to 15%. The new import duty includes a Basic Custom Duty (BCD) of 10% and a 5% Agriculture Infrastructure Development Cess (AIDC), with an exemption from the Social Welfare Surcharge (SWS). The Ministry has also raised import duty on spent catalysts containing precious metals to 14.35%, including a 10% BCD and a 4.35% AIDC. These new rates became effective on January 22.
The Finance Ministry of India has hiked import duties on gold, silver findings, and coins of precious metals. The new import duty rate is set at 15%, with a 10% BCD and a 5% AIDC, as stated in an official notification. This increase aims to discourage the import of these precious metals and support domestic producers.
Gold and silver findings refer to small components such as hooks, pins, or screws that are used to hold pieces of jewelry together. These findings are crucial in the jewelry-making industry. The import duty increase on spent catalysts containing precious metals, which are used in various industrial processes, will be 14.35%.
The Finance Ministry’s decision to raise import duties on gold, silver findings, coins of precious metals, and spent catalysts is part of efforts to promote domestic production and reduce dependence on imports. The duties would increase the cost of importing these items, making them less attractive compared to locally produced alternatives.
Higher import duties on these items can also protect domestic producers from unfair competition and help enhance the competitiveness of the domestic industry. This move supports the government’s “Make in India” initiative, which aims to boost manufacturing and promote self-sufficiency in various sectors.
The increase in import duties is expected to have an impact on the prices of gold, silver findings, and coins of precious metals in the Indian market. With higher import costs, it is likely that the prices of these items will rise, potentially affecting consumers and businesses that rely on these materials.
The decision to raise import duties on gold, silver findings, coins of precious metals, and spent catalysts aligns with the government’s overall goal of promoting domestic production and reducing imports. While this move may have short-term implications on prices, it is aimed at supporting domestic industries and enhancing self-sufficiency in the long run.
