Page 10 - Bullion World Volume 3 Issue 2 February 2023

Bullion World | Volume 3 | Issue 2 | February 2023

Mr Surendra Mehta, Secretary, IBJA
“Silver dore are usually part of Gold dore. Since the duty on silver dore
technically was earlier 14.35% but the duty on silver bars was only 10.75%,
it was technically not possible to recover differential duty of 3.6% through
sale of silver bar.” Hence, it was our demand to bring duty on silver bars
parallel to gold bars. We are happy that same has been accepted in budget
2023 by Hon. Finance Minister.

Since the rupee has been constantly weaking and CAD at its peak which is
being major concern for govt, due to expected recession, the demand for
reduction in duty on gold was not considered by Hon. Finance Minister. This
has been really disappointing for industry as more duty encourages illegal
import which helps unorganised and non-transparent players. The hike in import duty of jewellery from
22% to 25% will not impact much as import of jewellery is miniscule in comparison to import of bullion. In
the country it will help domestic manufactures.

Mr Satish Bansal, President, Association of Gold Refiners & Mint
We thank the finance minister for considering our suggestion for aligning
import duty on silver bullion with that of silver content contained in gold
Dore. About 5% to 40% silver is present in gold dore imports. Earlier, silver
content in gold dore was being subject to import duty of 14.35% by the
customs, while silver bullion had a lower duty of 10.75%. Thus, the refiners
were suffering a loss. The budget has corrected the anomaly.

Mr Jayantilal Challani, President, The Jewellers and Diamond Traders
Association, Chennai
The Union Budget proposed for 2023-24 was a mixed bag for Gems
and Jewellery Industry. The conversion of physical gold to Electronic
Gold Receipt and vice versa will not attract any capital gains is a positive
move and the government recommendations to promote indigenous
manufacturing in the upcoming Lab Grown Diamond sector is much
welcomed. On the other side, sticking to 10% as Basic Customs Duty would
be definitely encourage the grey market .The thriving grey market has
diluted efforts to reduce cash transactions and penalizes organised and
compliant players. Reduction in customs duty on gold was most anticipated
but it was not addressed. This might severely hamper the industry and
encourage again the grey market.

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