NEW DELHI: Government on Tuesday moved to check misuse of lower customs duty on certain types of gold, silver and plug a loophole.
As a result, it increased the import duty on gold and silver findings and coins to 15% by imposing a 5% Agriculture Infrastructure Development Cess (AIDC). A cess of 4.35% has also been levied on ‘spent catalyst or ash containing precious metals’, a notification issued by Central Board Of Indirect Taxes & Customs (CBIC) said.It is in addition to the basic customs duty of 10%.
The new levies kicked in from Monday.
For the last few months, industry has been complaining of a surge in imports of gold findings, which includes hooks, clasps and other components used to make jewellery. Now, government has stepped in to bring duties on a par.
“We don’t think it will affect prices of these metals as genuine buyers were not aware of the import duty difference but definitely it will pause import of findings in the shorter terms,” said Rahul Kalantri, vice president commodities at Mehta Equities.
In the 2021-22 Budget, the government had introduced AIDC cess on certain items to fund agricultural infrastructure.
As a result, it increased the import duty on gold and silver findings and coins to 15% by imposing a 5% Agriculture Infrastructure Development Cess (AIDC). A cess of 4.35% has also been levied on ‘spent catalyst or ash containing precious metals’, a notification issued by Central Board Of Indirect Taxes & Customs (CBIC) said.It is in addition to the basic customs duty of 10%.
The new levies kicked in from Monday.
For the last few months, industry has been complaining of a surge in imports of gold findings, which includes hooks, clasps and other components used to make jewellery. Now, government has stepped in to bring duties on a par.
“We don’t think it will affect prices of these metals as genuine buyers were not aware of the import duty difference but definitely it will pause import of findings in the shorter terms,” said Rahul Kalantri, vice president commodities at Mehta Equities.
In the 2021-22 Budget, the government had introduced AIDC cess on certain items to fund agricultural infrastructure.