Centre Raises Import Duty on Gold, Silver Findings by 15% to Curb Misuse

The Indian government has increased the import duty on gold, silver, and coins to 15% by implementing a five percent Agriculture Infrastructure Development Cess (AIDC). This move is strategically aimed at preventing the misuse of lower import duties, particularly on specific types of gold and silver components.

Key Points:

1. Definition of "Gold or Silver Findings":

   • The term refers to small components like hooks, clasps, clamps, pins, catches, and screw backs used to secure the entirety or parts of a jewelry piece.

2. Import Duty Hike Details:

   • The Central Board of Indirect Taxes and Customs notification confirms the increase in import duty on gold and silver.
   • The duty is now set at 15%, inclusive of a five percent Agriculture Infrastructure Development Cess.

3. Scope of Hike:

   • The focus of the duty hike is on preventing the misuse of lower import duties, specifically related to gold and silver bars.

4. Additional Import Duty Changes:

   • The finance ministry has also raised import duty on spent catalysts containing precious metals to 14.35%.
   • This includes 10% Basic Custom Duty (BCD) and 4.35% AIDC (Agriculture Infrastructure Development Cess), with an exemption from SWS.

5. Budgetary Context:

   • The move aligns with the government's earlier announcement during the 2021-22 budget, where an AIDC was introduced on specified goods, including alcoholic beverages, gold, silver, cotton, peas, apple, petrol, and diesel.

6. Agricultural Infrastructure Development Cess (AIDC):

   • The AIDC is part of a broader initiative to enhance agricultural infrastructure and development, as emphasized by Finance Minister Nirmala Sitharaman during the budget announcement.

7. Government's Perspective:

   • The government justifies the duty hike as a measure to address the surge in imports of gold findings over the last two months, aiming to safeguard against circumvention of duties.

The Indian government's decision to increase import duties on gold, silver, and related components reflects a strategic move to prevent potential misuse and promote fair trade practices in the precious metals market. This initiative aligns with broader efforts to strengthen agricultural infrastructure and fiscal responsibility as outlined in the budget.