Customs Duty on Gold, Silver, Platinum Increased
Finance Minister, Mr. Pranab Mukherjee, in his 2010/11 budget on Friday raised the Customs duty imposed on gold and platinum imports by Rs 100 for 10 gram to Rs 300. For silver, the duty has been increased by Rs 500 to Rs 1,500 a kg.
The increase has emerged at a time when the industry has begun to see a revolution in gold imports from January even as precious metal prices have posed volatility in the recent months.
According to Bombay Bullion Association data, gold import in January registered a rise to 37 tonnes against 27 tonnes in December. It was 30 tonnes in November. However, in October gold's arrival into the country was 48 tonnes on good demand from retail jewellers.
Gold futures on the Multi Commodity Exchange (MCX) rose 0.45 per cent to Rs 16,769 per 10 grams at 3:29 pm, after hitting a high of Rs 16,799 earlier.
Mr. Vasant Mehta, Chairman, Gems and Jewellery Export Promotion Council revealed, “The cost of manufacturing would increase as compared to the competitive countries as the government has not extended the two per cent subvention to the industry and affect the exports from the country.”
In addition, the government has lowered customs duty on rhodium – a precious metal used for polishing jewellery – to 2% from 10%.
