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Gold to become more expensive

Updated: Aug 13, 2013 04:34:36pm
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New Delhi, Aug 13 (KNN)  In  an effort to contain the current the current account deficit, the customs duty on gold and platinum has been increased from 8 per cent to 10 per cent and on silver from 6 per cent to 10 per cent.
 
“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 per cent to 8 per cent and on silver dore bar from 3 per cent to 7 per cent,” said an official notification.
 
Pursuant to 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 per cent to 9 per cent. 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 per cent to 8 per cent.  Notifications in this regard were issued in the Parliament today.
 
India is a major importer and consumer of gold and silver. The quantity of gold imported during 2012-13 was 845 tonnes valued at Rs 2, 45,862 crore. The quantity of silver imported during 2012-13 was 1963 tonnes valued at Rs 10,691 crore.  Prior to 17th January 2012, the import duty on Standard Gold (of purity 99.5 per cent and above) was Rs 300 per 10 gm. The duty was raised to 2 per cent w.e.f. 17th January 2012; thereafter, it was raised to 4 per cent in the Budget 2012-13 and the duty was further raised to 6 per cent w.e.f. 21st January 2013. The duty on gold was thereafter increased from 6 per cent to 8 per cent w.e.f. 5th June 2013. The basic purpose of enhancing the duty was to curb the import of gold. The duty rates for silver were last revised w.e.f. 17th January 2012. Prior to 17th January 2012, customs duty on Silver was on specific rate basis (Rs. 1,500 per kg) which was raised to 6 per cent w.e.f. 17th January 2012. 
 
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 per cent. In value terms, the imports increased from Rs. 56,488 crore to Rs. 95,092 crore, an increase of about 68 per cent. 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 per cent. Yesterday, the Finance Minister had underlined the need for compression in the import of gold and silver.  (KNN)
 

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