Budget 2024: Sitharaman proposes to slash import tax on gold, silver to 6% to curtail smuggling

July 23, 2024

Synopsis
Union Budget 2024-25: Finance Minister Nirmala Sitharaman on Tuesday proposed reducing import duties on gold and silver to 6 percent from the previous 15 percent while announcing the Union Budget 2024-25. The reduction aims to boost retail demand and tackle smuggling in India, the world’s second-largest consumer of bullion.

Budget 2024-25: Finance Minister Nirmala Sitharaman on Tuesday proposed slashing import duties on gold and silver to 6 per cent from 15 per cent, while announcing Union Budget 2024-25.

The move could boost retail demand and help curtail smuggling in the world's second-biggest consumer of bullion, reported Reuters, citing industry officials.

"To enhance domestic value addition in gold and precious metal jewellery, I propose to reduce customs duties of gold and silver to 6 per cent," Finance Minister Nirmala Sitharaman said in a budget speech on Tuesday.

Higher demand for gold from India could boost global prices, which hit a record high this year, although that could widen India's trade deficit and put pressure on the ailing rupee.

Sitharaman also announced an import duty exemption for 25 critical minerals, including lithium. India has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries.

[The Economic Times]