India Increases Import Duty on Gold, Silver, and Platinum to 18.45%
Finance Ministry raises total import duty on precious metals to curb imports and reduce trade deficit.
Source: Livemint EconomyThe Indian Finance Ministry has significantly increased the total import duty on gold, silver, and platinum from 9.18% to 18.45%. This new rate includes a 10% basic customs duty, 5% agriculture cess, and 3.45% Integrated GST. Previously, these rates were 5%, 1%, and 3.18% respectively. This move aims to reduce the country's reliance on precious metal imports, which contribute to a higher trade deficit. The government hopes this will also discourage non-essential imports and support the domestic economy. However, the industry fears this hike could lead to increased smuggling and job losses in t
- The total import duty on gold, silver, and platinum has been raised from 9.18% to 18.45%.
- The new duty structure includes 10% Basic Customs Duty, 5% Agriculture Cess, and 3.45% Integrated GST.
- Previously, the Basic Customs Duty was 5%, Agriculture Cess was 1%, and Integrated GST was 3.18%.
- The primary objective of this duty hike is to curb the import of precious metals.
- Industry stakeholders have expressed concerns about potential increases in smuggling and job losses due to the higher duties.
A tax imposed on goods imported into a country. It is also known as customs duty or tariff. Import duties are typically levied to raise revenue for the government, protect domestic industries from foreign competition, or regulate the flow of goods.
A trade deficit occurs when a country's imports of goods and services exceed its exports. It indicates that a country is spending more on foreign goods and services than it is earning from selling its own goods and services abroad, potentially impacting its currency value and economic stability.
A type of tax levied on imported goods in India. It is a fundamental component of the customs duty structure and is imposed under the Customs Act, 1962. The rate of BCD varies depending on the type of goods being imported.
A tax levied on all inter-state supplies of goods and services in India, as well as on imports. IGST is collected by the Central Government and is designed to ensure a seamless flow of input tax credit across states, making India a unified common market.
Questions on import duties often focus on the reasons for changes (e.g., trade deficit, domestic industry protection) and the components of the duty structure (e.g., BCD, GST, cess).
Remember 'Gold Duty Double' - the duty roughly doubled from 9% to 18%, impacting India's trade balance.