New Delhi – The Indian government has implemented an increase in the import duty on gold and silver findings used in jewellery manufacturing, as well as precious metal coins, raising the rate from 11% to 15%, effective from January 22nd. This adjustment brings the duty on these items in line with the existing duties imposed on gold and silver bars.
The Ministry of Finance in India issued a notification on Monday, outlining the updated import duties. Additionally, the import duty on spent catalysts containing precious metals has been raised to 14.35% from 10.1%.
The primary objective of this move is to curb the circumvention of duties on gold and silver bars, a concern raised due to a recent surge in imports of gold findings such as hooks, clasps, and other components crucial in jewellery production. The decision aims to maintain consistency in the duty structure and prevent any potential loopholes in the taxation system.
The government official who disclosed this information highlighted that the adjustment is a strategic measure in response to increased imports in the past two months, focusing on gold findings. This move seeks to regulate the flow of precious metals into the country and maintain a balanced trade environment.
It’s important to note that India holds the position of being the world’s second-largest consumer of gold, and the majority of its gold supply comes from imports. The revision in import duties is anticipated to have a regulatory impact on the importation and trade dynamics of precious metals within the country.
