Budget 2019 | Gold Duty | The government today increased customs duty on gold. Currently, gold attracts import duty of 10%. According to the Budget proposals, import duty to be hiked on gold and precious metals to 12.5%, from current level of 10%.
India is one of the largest gold importers in the world, and the imports mainly take care of demand from the jewellery sector.
India imported gold worth $32.8 billion during 2018-19.
he Union Budget 2019 made provisions to raise customs duty on gold and precious metals. Prices for gold and other precious metals will go up with the latest announcement.
Import of gold currently attracts a 10 per cent customs duty.
“It is also proposed to increase custom duty on gold & other precious metals from 10 per cent to 12.5 per cent,” announced Nirmala Sitharaman in her Budget speech.
The government had only recently received appeals from traders demanding a reduction on customs duty on gold.
However, the government did not pay heed to the demands and went on to hike duty on gold and other precious metals.
India is one of the largest importers of gold, mainly to meet the huge demand in jewellery sector.
The volume of imports of gold in India recently saw a dip. With the latest duty hike, it is likely to decrease further.
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gold contracts on MCX are seen at 34,239-34,544 rupees per 10 gm. On COMEX, the contracts are seen in a range of $1,412-$1,435 an ounce.
The silver contract on MCX is seen at 37,060-39,000 rupees per kg, and at $15.25-$15.45 an ounce on COMEX.