New Delhi, Jan 23, 2024: In a move to curb imports and support domestic manufacturers, the Indian government has raised import duties on gold and silver findings, as well as coins of precious metals, to 15%. This new rate, effective January 22nd, replaces the previous 11% duty.
The increased duty comprises a 10% Basic Customs Duty (BCD) and an additional 5% under the Agriculture Infrastructure Development Cess (AIDC). Notably, these items are exempt from the Social Welfare Surcharge (SWS).
The government also raised the import duty on spent catalysts containing precious metals to 14.35%. This includes a 10% BCD and an additional 4.35% AIDC, again exempt from the SWS.
Officials stated that these changes aim to regulate imports and bolster the domestic precious metals industry. Import duties function as taxes levied on goods entering a country, often used to influence trade, protect local industries, and generate government revenue.
The Basic Customs Duty (BCD) serves as a standard import tax, while the Agriculture Infrastructure Development Cess (AIDC) acts as an additional levy, potentially used to offset the impact of other duties or taxes on production costs. Finally, the Social Welfare Surcharge generates funds for social welfare programs.
This move is likely to impact the affordability of imported gold and silver jewelry components and precious metal coins in India. However, it could potentially benefit domestic manufacturers of these items by making them more price-competitive compared to imported alternatives.
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