India Raises Gold & Silver Import Duty
Gold and silver prices are set to become more expensive as the government has changed the duty structure on preciousmetals from specific to value-linked, which will enable the exchequer to rake in an additional Rs 600 crore during the remaining months of the fiscal.
The ad-valorem rates of excise and customs on precious metals like gold, silver and platinum have come into effect from today, said a government notification. Diamonds, too, will now attract an import duty of 2 per cent. As per the changes, customs and excise duty will now be levied on the value of the precious metals instead of a fixed amount, meaning that the incidence of duty will move up with the rise in prices of the goods, thereby making them more expensive. According to the notification, the import duty on gold has been fixed at 2 per cent of the value, instead of the earlier rate of Rs 300 per 10 grams. On silver, the import duty has been pegged at 6 per cent, as against Rs 1,500 per kg earlier. With respect to excise, the duty on gold has been fixed at 1.5 per cent of the value, as against the earlier fixed rate of Rs 200 per 10 grams. Silver will attract excise of 4 per cent, as compared to a fixed duty earlier of Rs 1,000 per kg.
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