New Delhi. Big news related to gold and silver business has come out. The Central Government has reduced the rates of duty drawback i.e. refund on export of gold jewelery and silver items. Due to this, Indian jewelery exporters will get less refund than before and their profits may be affected.
How much did the rates decrease on gold and silver?
As per the new rates, the duty drawback on gold jewelery has been reduced from Rs 1,851.99 per gram to Rs 1,794.11 per gram. That means there has been a decrease of about 3.1 percent. At the same time, refund on silver jewelery and other items has been reduced from Rs 29,501.09 per kg to Rs 26,859.02 per kg. This has been reduced by about 9 percent.
Refund rates were increased earlier
The government had increased these rates in July to provide relief to exporters. At that time its objective was to encourage the export of gold and silver jewelery and to reduce the cost pressure of traders. Now the reduction in rates will reduce the financial assistance available to exporters.
Will the prices of gold and silver be affected?
The change in duty drawback rates is directly related to the refund received by exporters. This does not mean that the prices of gold and silver in the domestic market will increase or decrease in the same proportion. Prices in the Indian market are also influenced by international prices, exchange rate of rupee and other costs.