The government has proposed to increase import duty on precious metals, including gold, silver and platinum. This move is likely to make this metals expensive in the domestic market. Finance Minister Nirmala Sitharaman, in her Budget speech, has proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.
The similar hike was proposed for silver (including silver plated with gold and platinum); base metal clad with silver; platinum; and waste and scrap or precious metals. Currently, these metals attract 10% import duty.The country's gold imports dipped about 3% in value terms to $32.8 billion during 2018-19. Dip in the imports expected to keep a lid on the current account deficit.
Total imports of the precious metal in 2017-18 stood at $33.7 billion as against $27.5 billion in 2016-17 and $31.8 billion in 2015-16. In volume terms, India imported 982 tonnes of the yellow metal in the previous financial year. The imports in 2017-18, 2016-17 and 2015-16 were 955 tonnes, 778 tonnes and 968 tonnes, respectively.
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