Government proposes increase of 12.5 PCs in gold import tariff
New Delhi, July 5 () On Friday, the government proposed raising tariffs on imports of precious metals, including gold, silver and platinum, a measure that will make them expensive in the domestic market.
Finance Minister Nirmala Sitharaman said in her speech on the budget that she intends to raise tariffs on gold and other precious metals from 10 percent to 12.5 percent.
A similar walk was proposed for silver (including silver plated with gold and platinum); metal base coated with silver; platinum; and waste and precious metals.
Currently, these metals also attract 10 percent of import duties.
Now, with a walk at work, jewelry or other items made from these precious metals will become expensive.
The decision to increase import tariffs on gold came at a time when the national jewelery industry demanded a cut in it.
The Ministry of Commerce had also recommended in the past the reduction of duty.
The country's gold imports fell approximately 3 percent in value terms to USD 32.8 billion during 2018-19. Submerging in imports expects to keep a limit on the current account deficit.
Total imports of precious metals in 2017-18 amounted to USD 33.7 billion, compared to USD 27.5 billion in 2016-17 and USD 31.8 billion in 2015-16.
In terms of volume, India imported 982 tons of yellow metal in the previous fiscal year.
Imports in 2017-18, 2016-17 and 2015-16 were 955 tonnes, 778 tonnes and 968 tonnes, respectively.
India is one of the largest gold importers in the world, and imports mainly meet the demand of the jewelery sector.
Exports of gems and jewelry decreased by 5.32% to USD 30.96 billion in 2018-19. The deficit of the current account (CAD) of the country, the difference between the exit and the entrance of currencies in the current account, increased to USD 57.2 billion or 2.1 percent of the gross domestic product in 2018-19, in comparison with 1.8 percent of the previous year. RR RR BAL BAL