Gold enthusiasts and investors can get great news in the budget. Commerce Ministry has proposed to reduce the import duty on gold in the upcoming budget to promote the gems and jewelery industry. Explain that the government had increased the import duty on gold in July this year. The gems and jewelery industry has since been demanding the government to remove it. The Finance Minister will present the general budget of 2023 on 1 February.
how much is the tax on gold
In July last, the central government had increased the import duty on gold from 10.75 per cent to 15 per cent. The government had taken this step with the intention of reducing the current account deficit and controlling the rising import of gold. Gold attracts a basic customs duty of 12.5 per cent while agriculture infrastructure development cess is levied at the rate of 2.5 per cent. Thus, the total effective import duty becomes 15 per cent.
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What did the commerce ministry say
Keeping in mind the demands of the gems and jewelery industry, the commerce ministry has urged the finance ministry to make such a proposal in the upcoming budget. Sources said, “The Ministry of Commerce has also demanded a change in import duty on some other products to promote the manufacture and export of gems and jewellery.” Stakeholders associated with the export of gems and jewelery have been demanding reduction in import duty for a long time.
Expensive imports affected business
Collin Shah, former chairman of the Gems and Jewelery Export Promotion Council (GJEPC), said the industry is pinning hopes on the announcement of export-promoting measures in the budget to be presented on February 1. “The reduction in import duty on gold and a progressive repair policy for jewelery will have wide-ranging benefits for the sector. We are also optimistic about the possible taxation of rough diamonds and those used in laboratory prepared diamonds,” Shah said. Duty on seeds to be abolished.”
18 percent drop in gold imports
During April-November in the current financial year, exports of gems and jewelery from the country increased by two percent to $ 26.45 billion. During this period, gold imports decreased by 18.13 percent to $ 27.21 billion. Lower gold imports help reduce the current account deficit.
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