Government increases import duty on gold and silver findings, precious metal coins to 15 per cent

The government has announced an increase in import duties on gold and silver findings, as well as precious metal coins, to a total of 15 per cent. This includes a Basic Customs Duty (BCD) of 10 per cent and an additional 5 per cent under the All Industry Duty Drawback (AIDC), with an exemption from the Social Welfare Surcharge (SWS).

For spent catalysts containing precious metals, the import duty has been raised to 14.35 per cent. This comprises a 10 per cent. Basic Customs Duty (BCD) and an additional 4.35 per cent under the All Industry Duty Drawback (AIDC), with an exemption from the Social Welfare Surcharge (SWS).

The changes, effective January 22, 2024, are aimed at regulating imports and supporting the domestic economy. Import duties, in this context, refer to the taxes or tariffs imposed by the government on goods and commodities brought into the country. Such duties serve various purposes, including regulating trade, protecting domestic industries, generating revenue for the government, and influencing economic activities.

The Basic Customs Duty (BCD) is a standard duty applied to imported goods, while the All Industry Duty Drawback (AIDC) serves as an additional duty to counterbalance the impact of other duties or taxes on the cost of production. The exemption from the Social Welfare Surcharge (SWS) indicates relief from an additional duty imposed for financing social welfare programmes.

(With PTI inputs)