Gold and Silver Set to Get Costlier as Government Raises Import Duty to 10%

New Delhi: If you are thinking of buying gold or silver in the coming days, your pocket may be affected more than before. The central government has made a major change in the duty imposed on the import of gold and silver, after which an increase in their prices is considered certain. According to the new notification issued by the Finance Ministry, the basic custom duty on gold and silver has been increased to 10 per cent. Apart from this, a five per cent Agriculture Infrastructure and Development Cess, i.e., AIDC, will also be imposed on them.

How much has the import duty changed?

After this decision of the government, the total effective import duty on gold and silver has directly increased from 6 per cent to 15 per cent. This means that now gold and silver coming to India from abroad will be more expensive than before. Its direct impact will be seen on the prices in the domestic market.

Experts believe that when import costs increase, jewellers also have to pay higher prices. In such a situation, it is almost certain that the prices of jewellery sold in the market and gold bars or coins bought for investment will also increase.

Will only gold and silver be affected?

No, its impact is not going to be limited to just raw gold and silver. The government has also changed the duty on small parts called findings, used in making jewellery. Apart from this, the duty on platinum has also been revised.

This means that the overall production costs of the jewellery industry may increase. Small jewellers and businessmen may also be affected by this decision, because now they will have to buy raw materials at higher prices.

What will be the impact on common people?

The biggest impact is likely to be on common customers. Be it a wedding season or a festival, the tradition of buying gold and silver is quite strong in India. In such a situation, people's budget may get spoilt due to increase in prices.

Although the government believes that such steps help in strengthening domestic industry and revenue, at present buying gold and silver may prove to be more expensive than before for the customers.