Gold-Silver Import Duty Cut: Gold and silver may become cheaper. During the festive season, Modi government is considering reducing the import duty i.e. custom duty on gold and silver. The Gems and Jewelery Council has pointed towards this important change. Rajesh Rokade, chairman of the Gems and Jewelery Council, told ET Online that the high tax rates have failed to serve their purpose, following which the government is reconsidering the policy.
According to the Gems and Jewelery Council, the effect of increased import duty on gold and silver is proving to be ineffective. Despite increased duty to curb imports, there has been no significant decline in the demand for gold in the country. On the contrary, smuggling has increased. Therefore, now the government is considering tax cuts.
According to media reports, when the government had increased the import duty on gold, the jewelery body had already warned. He said that heavy taxes would encourage illegal business. According to Rokade, this is exactly what happened. The government expected that the import of gold would fall due to increase in duty, but this did not happen. Imports did not reduce, but the scope of gray market in the country expanded rapidly. The government has been considering reducing the import duty on gold and silver for a long time. At present no final decision has been taken on duty reduction. However, it is expected that the government can reduce the import duty.
Custom duty was increased by 9 percent in the month of May this year
Let us tell you that in the month of May this year, the Central Government had directly increased the custom duty on gold and silver from 6 percent to 15 percent. This step was taken to reduce the pressure on the country's foreign exchange reserves amid the ongoing tension in West Asia.
About 700 to 900 tonnes of gold is imported into the country every year.
Let us tell you that India is the second largest consumer of gold in the world after China. Every year about 700 to 900 tonnes of gold is imported into the country. If we look at the government data, in FY 26, gold import increased by 24 percent to a record level of $ 71.9 billion. However, in terms of quantity, imports decreased to 721 tonnes. Still the burden of the bill has not reduced.
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