Indian government has raised the customs duty on gold, platinum and silver to 10 percent in a bid to curb the surging imports. The decision is bound to increase the prices of gold and silver in India.

New Delhi, Aug 13/Nationalturk- Indian government has raised the customs duty on gold, platinum and silver to 10 percent in a bid to curb the surging imports.

“As part of measures towards containing the current account deficit, the customs duty on gold and platinum has been increased from 8% to 10% and on silver from 6% to 10%,” an official of Indian Finance Ministry said.

He said consequential adjustments in customs duties are being made on gold ore / concentrate, gold dore bar and silver dore bar. “Thus, additional duty of customs (CVD) on gold dore bars and on gold ore/concentrate is being increased from 6% to 8% and on silver dore bar from 3% to 7%.”

The official said in view of changes in the customs duties on gold and silver, excise duty on refined gold bar produced from gold ores/ concentrate, gold / silver dore bar or from copper smelting is being increased from 7% to 9%. “Likewise, excise duty on silver manufactured from silver ore or concentrate, silver / gold dore bar or from copper, zinc or lead smelting is being increased from 4 % to 8%.”

India is a major importer and consumer of gold and silver.

‘845 MT of gold imported in India during 2012-13’

“The quantity of gold imported during 2012-13 was 845 metric tonnes (MT) valued at Rs. 2, 45,862 crore (Indian currency). The quantity of silver imported during 2012-13 was 1963 MT valued at Rs. 10,691 crore,” the official said.

He said imports of gold and silver have witnessed a surge in recent months. “In quantitative terms, the imports of gold increased from 205 MT in April – July 2012 to 383 MT in April – July 2013, an increase by about 87%. In value terms, the imports increased from Rs. 56,488 crore to Rs. 95,092 crore, an increase of about 68%”.

“Similarly, during April-July 2013, silver valued at Rs. 12,789 crore was imported in comparison with silver valued at Rs. 4,281 crore imported during April-July 2012, an increase of nearly 200%,” the official added.

This is the third time that the government has raised the duty on gold this year. With the increase in customs duty, the prices of gold, platinum and silver in India are likely to increase.

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Faiz Ahmad / NationalTurk India News