Proposal to cut customs duty on gold, silver, platinum in Union Budget

Finance Minister Nirmala Sitharaman on Tuesday proposed to reduce customs duty on gold and silver to 6 per cent and on platinum to 6.4 per cent to promote value addition in precious metal jewellery.

“In order to enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce the customs duty on gold and silver to 6 per cent, and on platinum to 6.4 per cent,” Sitharaman said while presenting the Union Budget 2024-25 in the Lok Sabha.

Referring to other metals, he/she said steel and copper are important raw materials.

“To reduce the cost of production, I propose to remove BCD (basic customs duty) on ferro nickel and blister copper. I am also continuing with zero BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap,” she said.

Beginning her Budget speech, Sitharaman said the people of India have expressed their faith in the government led by Prime Minister Narendra Modi and re-elected him/her for a historic third term.

“We are grateful for their support, trust and confidence in our policies. We are determined to ensure that all Indians, regardless of religion, caste, gender and age, make substantial progress in realising their life goals and aspirations,” he/she said.

The minister said the global economy was performing better than expected but was still vulnerable to policy uncertainties.

“Higher asset prices, political uncertainties and shipping disruptions will continue to pose significant downside risks to growth and upside risks to inflation.”

he/she said that India’s economic growth still remains a great exception and will remain so in the years to come.

he/she said, “India’s inflation remains low, stable and moving towards the target of 4 per cent. Core inflation (non-food, non-fuel) is currently at 3.1 per cent. Steps are being taken to ensure adequate supply of perishable goods reaches the market.”

The minister said the government will undertake a comprehensive review of the agricultural research system to focus on enhancing productivity and developing climate-resilient varieties.

“Funding will be provided in challenge mode, including from the private sector. Domain experts from the government and outside will oversee the conduct of such research,” he/she said.