India Budget Announced Significant Cut in Gold and Silver Import Duty
Wed July 24 2024
In reaction to the budget announcement, the domestic gold prices witnessed sharp dip in prices.
The most recent budget presented by the Finance Minister has announced significant cut in customs duty on gold and silver. The overall import duty on gold and silver were reduced from 15% to 6%. The Basic Customs Duty (BCD) has been reduced from 10% to 5%, whereas the Agricultural Infrastructure Development Cess (AIDC) saw a reduction from 5% to 1%.
The move by the Indian government will result in sharp decline in prices of gold and silver. Consequently, the industry expects a big uptick in retail demand for these precious metals. Also, the government aims to curb down smuggling of the yellow metal.
In reaction to the budget announcement, the domestic gold prices witnessed sharp dip in prices. The prices dropped to their lowest level in more than three months. It must be noted that domestic as well as international gold prices have been on a rise during the past several months. Also, for the first time in almost eleven weeks, gold was seen trading at a premium in India.
Sachin Jain, CEO of World Gold Council’s Indian operations termed the decision as a massive step in the right direction. The move will reduce the incentives for illegal trading and also create a level playing field for honest industry stakeholders.
Source: https://www.scrapmonster.com