Union Govt Increases Gold, Silver Import Tariffs to 15%, Raises Customs Duty For Precious Metal Findings

New Delhi: With the Union government deciding to curb imports of precious metals, India has raised import tariffs on gold and silver to 15%, reversing the 2024 duty cuts, reported Livemint. As the government tries to narrow trade deficit and support the falling rupee amid mounting external pressures, the Union Finance Ministry on Tuesday (May 12) notified the changes through multiple customs notifications, with the revised rates set to come into effect from Wednesday (May 13).

As per the notifications, the government has raised the basic customs duty on several categories of gold and silver imports to 10% from 5%, even as the Agriculture Infrastructure and Development Cess (AIDC) of 5% continues. The latest increase takes the total effective import tax to 15%.

The Finance Ministry has also revised customs duty rates for precious metal findings and recyclable precious metal waste.

As per the revised structure, gold and silver findings will now have a 5% customs duty, while platinum findings will face a 5.4% duty.

Moreover, imports of spent catalysts or ash containing precious metals will also have a concessional 4.35% duty, subject to compliance conditions and recycling-related clearances, reported LiveMint.a

The latest development comes as India continues to face pressure on its current account deficit and currency amid rising crude oil prices and increased bullion imports.

At the moment, India is the world’s second-largest consumer of gold and the largest importer of silver, with its almost entire domestic demand being met through supplies from overseas.

The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.