Govt raises import duty on gold, silver, platinum, hopes to collect Rs 4,830 cr

Aug 13 2013, 22:21 IST
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India, the world's biggest buyer of gold, has been trying to curb gold imports which is the second biggest imported item after crude oil. Reuters India, the world's biggest buyer of gold, has been trying to curb gold imports which is the second biggest imported item after crude oil. Reuters
SummaryIndia, the world's biggest buyer of gold, has been trying to curb gold imports.

The government today increased import duty on gold, silver and platinum to 10 per cent with a view to arrest the declining value of Indian rupee and contain the fiscal deficit to 3.7 per cent of the GDP.

"... customs duty on standard gold and platinum (increased) from 8 per cent to 10 per cent and on silver from 6 per cent to 10 per cent", said a notification issued by the Finance Ministry.

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The hike in duty follows the announcement made by Finance Minister P Chidambaram yesterday that government will take steps to compress demand of precious metals with a view to check the sliding rupee value and contain Current Account Deficit (CAD) to 3.7 per cent in 2013-14.

Current account deficit (CAD) touched all all time high of 4.8 per cent of the GDP in 2012-13.

The government has also raised the duty on gold ore/ concentrates/dore bars and silver dore bars ranging from 7 per cent to 10 per cent.

"The revenue implications of these changes are estimated at Rs 4,830 crore for the remaining part of the financial year at current levels of import", the Ministry said.

Government has also raised excise duty on refined gold bar produced from gold ore/ concentrate and gold/silver dore bars or during copper smelting from 7 per cent to 9 per cent.

The notification further said that excise duty on silver manufactured from silver ore or concentrates, silver/gold dore bars or during copper, zinc or led smelting from 4 per cent to 8 per cent.

These notifications were tabled in Parliament today.

The gold import in the current fiscal, according to official estimates, was likely to come down to 850 tonnes from 950 tonnes in 2012-13.

As regards the non-essential items, an official said that the Ministry was working on it and notifications would be made in the due course.

The rupee, on account of various domestic and global factors, had slipped to 61.80 to a dollar earlier in the month. It was trading at around 61 to a dollar.

India hikes gold, silver import duty to 10 pct

(Reuters) Import duty has been hiked on refined gold bars for a third time in eight months to 10 percent from the earlier 8 percent, the finance ministry said in a statement on Tuesday.

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