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Finance Minister Nirmala Sitharaman on Monday announced that the government would rationalise the customs duty on gold and silver in order to bring down the high prices.
“Gold and silver presently attract a basic customs duty of 12.5 percent. Since the duty was raised from 10 percent in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, we are rationalising custom duty on gold and silver,” said Sitharaman while presenting the Union Budget 2021-22 in the Parliament.
World Gold Council welcomed the government’s move, saying that it should lead to positive outcomes for the gold industry.
“The rationalisation of import duty on gold to around 10.75 percent from 12.5 percent is a welcome move and timely. Hopefully, this is the first of a series of such cuts to make bullion an asset class that operates mainstream. It is a much-needed incentive for the organised and compliant players in the bullion and gold jewellery market. A rationalised duty structure and simplified processes are fundamental to an organised trading market,” said Somasundaram PR, Managing Director, India, World Gold Council.
The Finance Minister announced higher capital expenditure for the FY 2021-22 and focused on providing a major boost to healthcare and infrastructure building.
In her Budget speech, Sitharaman mentioned that this year’s budget focused on six pillars- Health and Wellbeing, Physical and Financial Capital, and Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, and minimum government and maximum governance.