New Delhi. The Indian government has taken another big step regarding the import of precious metals. Now, increasing the strictness on the import of silver, a new policy has been implemented, under which the status of silver ingots has been changed from ‘free’ to ‘restricted’ category. This decision has come into effect with immediate effect.
Government’s strict stance on import of gold and silver
As per the government order, the government is continuously taking steps to control the flow of gold and silver. Its main objective is to reduce the country’s external economic pressure and strengthen monitoring of imports. In recent times, the government has implemented several stringent rules in this direction, including further tightening of import limits and compliance requirements.
New rules imposed on gold import also
The government has also imposed new restrictions on the import of gold. Under the ‘Advance Authorization’ (AA) scheme, the maximum limit for gold import has now been fixed at 100 kg. Along with this, physical inspection of the units of importers applying for the first time has been made mandatory, so that the production capacity and genuineness can be confirmed.
Conditions related to export also tightened
According to the new system, now approval for gold import is directly linked to export performance. That is, unless at least 50% of the export target fixed under the previous allocation is met, new imports will not be approved. With this, the government aims to ensure that imports are only need based and the export sector is not harmed.
Report will have to be given every two weeks
To enhance monitoring of the import process, the government has now made it mandatory for importers to submit performance reports every fortnight. This report will be certified by a chartered accountant and will contain complete information related to import and export. Through this, efforts are being made to increase transparency and accountability.
Increase in fees and taxes also
The government has already increased the import duty on gold and silver to 15%. Apart from this, 3% IGST is also applicable. The purpose of these steps is to stop unnecessary imports and reduce the pressure on foreign exchange reserves.
Why was this step taken?
According to experts, India’s import of precious metals has increased rapidly in recent years. Although the quantity has declined, there has been a huge increase in the price. The government believes that such strict policies will lead to better control on imports and will help in keeping the country’s economy stable.
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