The Finance Ministry of India has announced an increase in import duties on gold and silver findings, as well as coins of precious metals, raising the rate from the existing 10% to 15%.
The revision, effective from January 22, 2024, is aimed at aligning the duties on these items with those imposed on gold and silver bars.
The elevated import duty on gold and silver findings includes a Basic Custom Duty (BCD) of 10%, coupled with a 5% Agriculture Infrastructure Development Cess (AIDC), as stated in an official notification. Notably, this adjustment is exempt from the Social Welfare Surcharge (SWC).
Gold and silver findings, categorized as small components such as hooks, pins, or screws used in jewelry, will now attract the increased duty rate.
In addition to the changes in duty for findings and coins, the Finance Ministry has also raised the import duty on spent catalysts containing precious metals. The revised duty on these catalysts stands at 14.35%, comprising a 10% Basic Custom Duty and a 4.35% AIDC, with an exemption from the Social Welfare Surcharge.
Government officials have clarified that the decision to hike import duties on gold and silver findings is motivated by the need to prevent the circumvention of duties on gold and silver bars. The surge in imports of gold findings in the last two months, particularly hooks, clasps, and other components used in jewelry manufacturing, prompted the government to take proactive measures.
This move is expected to have implications for the precious metal industry, and stakeholders are closely monitoring the impact on trade dynamics and market trends.
The revised import duties reflect the government's commitment to maintaining fiscal equilibrium and preventing potential loopholes in the taxation system related to precious metals, officials asserted.
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