Govt Hikes Import Duty on Gold, Silver to 15%

NEW DELHI, May 13: The Ministry of Finance has revised customs duty rates on precious metals and jewellery findings, raising import duty on gold and silver from 6 per cent to 15 per cent, effective May 13.
Under the new structure, platinum import duty has also been increased from 6.4 per cent to 15.4 per cent, with consequential changes made to duties on dore, coins, findings and related items, according to an official notification.
The Ministry said gold and silver jewellery findings will now attract a customs duty of 5 per cent, while platinum findings will face a duty of 5.4 per cent. Jewellery findings were defined as small components such as hooks, clasps, pins and screws used to hold parts of jewellery in place.
A concessional customs duty of 4.35 per cent has been prescribed for imports of spent catalysts or ash containing precious metals, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
Importers availing the concessional rate must provide an undertaking on the precious metal content and confirm the goods are meant for recovery purposes. They are also required to submit certification from the Ministry of Environment, Forest and Climate Change permitting such imports.
The government said the revision is aimed at safeguarding macroeconomic stability, conserving foreign exchange reserves and moderating non-essential imports amid global uncertainty linked to the West Asia crisis.
It noted that volatility in global crude oil markets and shipping routes has raised concerns over import costs and supply disruptions, which could impact inflation and widen the Current Account Deficit.
The Centre said foreign exchange resources must be prioritised for essential imports such as crude oil, fertilisers, industrial inputs, defence equipment and capital goods, adding that curbing discretionary imports like precious metals would help maintain external sector stability. (Agencies)