Kumar Bahukhandi
Import Duty on Gold Hiked Following PM Modi’s Appeal — Photo — Arrangements
Following Prime Minister Modi’s appeal to refrain from purchasing gold, the Central Government has now announced an increase in customs duties on gold, silver, and other precious metals.
New Delhi : Prime Minister Narendra Modi had appealed to the citizens of the country not to purchase gold for a period of one year. PM Modi had even reiterated this appeal within 24 hours of making it. Now, the Modi government has shifted into “action mode” regarding this matter.
Along with gold, the government has also raised the customs duty on silver. This move by the government will make the import of gold, silver, and other metals more expensive.
The government has raised the import duty on gold and silver from 6 percent to 15 percent. The government has imposed a 10 percent Basic Customs Duty on the import of gold and silver.
Additionally, a 5 percent cess has been levied on this. Including the Agriculture Infrastructure and Development Cess, the total customs duty has reached the level of 15 percent.
An official order regarding this has been issued by the government. This move by the Modi government is being viewed as an effort to curb gold imports, stabilise the depreciating rupee, and alleviate pressure on the country’s foreign exchange reserves.
This hike in customs duty could potentially impact the demand for gold, silver, and other precious metals within India.
India is one of the world’s largest consumers of gold. However, officials have expressed concern regarding this government move, stating that increasing customs duties could lead to a rise in the smuggling of precious metals. Officials argue that instances of smuggling had actually declined following the year 2024.
It is worth mentioning that, in the 2024 budget, the Government of India had implemented a significant reduction in customs duties on gold, silver, and other precious metals.
At that time, the Government of India had reduced the customs duty on gold, silver, and other precious metals from 15 percent to 6 percent.
Following this move by the government, a record surge was observed in the import of gold and silver. Now, following the latest decision, customs duty has once again returned to the level it was at prior to the 2024 Budget.
