New Delhi: The finance ministry has raised import duties on ‘gold and silver findings’, coins of precious metals, and spent catalysts containing precious metals to 15 per cent from the existing 10 per cent, a move is learnt to have aimed at ending tax advantage in importing gold and silver and the findings as well. However, these new rates are effective from January 22 and are exempt from social welfare surcharge (SWC).
The ‘gold or silver findings’ means a small component such as hook, clasp, clamp, pin, catch, and screw back used to hold the whole or a part of a piece of jewellery in place. “The objective is to prevent evasion of duties on gold and silver bars, following a recent uptick in imports of gold findings such as hooks, clasps, and other components used in jewellery crafting,” as per a report, quoting a government official.
India holds the position of being the world's second-largest consumer of gold, with almost all supplies coming from imports. “Import duty on 'gold and silver findings' and coins of precious metals will now be 15 per cent. This includes basic custom duty (BCD) of 10 percent and 5 per cent of agriculture infrastructure development cess (AIDC). This is exempt from social welfare surcharge,” an official notification said.
The government had increased the import duty on silver, bars and articles during the budget 2023, to align them with that on gold and platinum. The ministry has also hiked import duty on spent catalysts containing precious metals. The duty has been hiked to 14.35 percent including 10 basic custom duty and 4.35 per cent agriculture infrastructure development cess with exemption from SWS.
