Gold Silver Price Today: Gold became costlier by 10 thousand and silver by 18 thousand, Central Government increased the import duty from 6% to 15%…

Business Desk- Gold Silver Price Today: The Central Government has increased the import duty on gold and silver from 6% to 15%. After this order issued on Wednesday, today on May 13, gold prices increased by 10,000 and silver prices increased by 18,000 in the futures market, especially in MCX.

The price of 10 grams of gold has reached 1.63 lakh, while the price of 1 kilogram of silver has reached 2.97 lakh. The aim of the government is to restrict foreign purchases and reduce the current pressure on the country’s foreign exchange reserves. The government has taken this decision amid the ongoing conflict between America and Iran.

The government has imposed 10% basic customs duty and 5% Agriculture Infrastructure and Development Cess (AIDC) on gold. As a result, the total effective tax rate is now 15%. Earlier, in the Budget 2024, Finance Minister Sitharaman had reduced the import duty from 15% to 6%.

Fear of increase in smuggling due to increased taxes

Meanwhile, people associated with the industry say that increasing taxes may increase smuggling activities. Earlier, when the duty was reduced, there was a significant reduction in smuggling.

National Secretary of India Bullion and Jewelers Association, Surendra Mehta said that the government has taken this step to keep the Current Account Deficit (CAD) under control. Since prices are already quite high, this decision may impact customer demand.

Understand this decision in three main points…

1. What changes have taken place? = New tax regime: Recently, the rules related to levy of 3% IGST (Integrated Goods and Services Tax) on import of gold and silver were changed. After this, today the import duty on gold and silver was increased from 6% to 15%. Situation of banks: After the implementation of IGST, banks were confused about the correct procedure for depositing this tax. As a result, he had stopped importing gold for almost a month. Result: Gold import is estimated to be only 15 tonnes in the month of April. This is the lowest monthly import recorded in the last three decades, except during the COVID-19 pandemic.
2. Why did the government take this step? = In India people buy gold in large quantities. Our country is the world’s second largest consumer of this precious metal. To meet this demand, we have to import gold from abroad. This process costs dollars. When a large amount of capital moves out of the country, it increases the pressure on the national economy. To reduce such ‘imports’ the government has tightened the tax rules.
3. What effect will this have on the common man? = Increase in prices: When the government increases taxes or duties, the ‘landing cost’ of gold—that is, the cost of reaching India—increases. As a result, gold will become more expensive than before. Decrease in supply: Due to tax implications and increased prices, wholesalers will probably import less quantity of gold. Less availability of gold in the market can also cause increase in prices.
4. What effect will this have on the economy? = With this decision, the country’s trade deficit can be reduced and the rupee can get some support. Yesterday on May 12, the rupee had reached its lowest ever level of 95.50 against the US dollar. In short, this decision is expected to bring long-term stability to the national economy.