The Finance Ministry has raised import duties on gold and silver findings, coins of precious metals, and spent catalysts containing precious metals. It is believed that this has been done to end tax advantage in importing gold and silver and findings.
According to the Finance Ministry, import duty on gold and silver findings and coins of precious metals will now be 15 per cent. This includes Basic Custom Duty (BCD) of 10 per cent and 5 per cent of AIDC (Agriculture Infrastructure Development Cess). There will be no Social Welfare Surcharge (SWC). Earlier, duty was 10 per cent. “Gold or silver findings’ means a small component such as hook, clasp, clamp, pin, catch, and screw back used to hold the whole or a part of a piece of jewelery in place.
The Ministry has also hiked import duty on spent catalysts containing precious metals to 14.35 per cent (BCD at 10 per cent and AIDC at the rate of 4.35 per cent). There will be SWS. Spent organic-based catalysts that contain precious metals have traditionally been treated by incineration to recover their precious metal content.
New rates have been made effective from January 22.