By In the Union Budget 2021, government minister Nirmala Sitharaman reduced tariff on gold and silver. Notably, custom duty on gold has been reduced to 7.5 per cent. whereas saying this Sitharaman same, “Gold and silver presently attract a basic tariff of 12.5%. Since the duty was raised from 100 percent in 2019The costs of precious metals have up sharply. To bring it nearer to previous levels, we have a tendency to area unit rationalising tariff on gold and silver.”
Sitharaman explained that the step was taken because of the rise in costs of the valuable metals. in step with specialists, high tariff on gold helps the govt. in reducing gold imports, that is nice because it keeps deficit below check.
The move was expected because the latest Economic Survey that was tabled in Parliament on weekday additionally same that gold has emerged as a “safe-haven investment” within the backcloth of the pandemic-induced economic uncertainties, with costs increasing by 26.2% in Gregorian calendar month 2020 as compared to December 2019.
“From January 2020 forrader, gold costs have sharply accrued with the sharp rise within the GEPU [Global policy Uncertainty]. In fact, compared to alternative assets, gold had returns throughout the year that were significantly higher,” the survey same.
Customs field formations across the country have rumored large-scale importation of gold principally as a result of moneymaking margins. Therefore, reducing the margin by dynamical the tariff on gold, may be a step towards reducing the importation of gold also.
