23 July 2024 Punjab Khabarnama : The government’s move to slash the basic customs duty on gold to six percent from 10 percent will make jewellery 4-5 percent cheaper for the end user, industry experts said.
“Retail consumers will have to pay less by approximately 4 percent. The effective rate of custom duty would be 11 percent, including 5 percent for agriculture, infrastructure, and development Cess. Then, the difference in the effective rate would reflect the reduction in jewellery price,” said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.
Finance Minister Nirmala Sitharaman announced today that she had slashed the basic customs duty on gold to six percent from 10 percent in her budget 2024 announcement. The reduction in customs duty will be effective July 24, 2024.
“To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent,” Sitharaman said in her speech.
According to the Budget 2024 document, this measure aims to reduce input costs, deepen value addition, promote export competitiveness, correct inverted duty structure, and boost domestic manufacturing.