New Delhi (Rajeev Sharma): In a major policy move, the Centre has revised customs duties on imported precious metals, raising the effective levy on gold and silver to 15 per cent with immediate effect.
The decision, announced through a notification by the Finance Ministry, introduces a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess, significantly increasing the cost of bringing precious metals into the country.
The revised duty structure, effective from May 13, covers imports of gold, silver, platinum and various industrial products connected to the jewellery sector.
Officials indicated that the measure is aimed at curbing heavy imports of bullion and preserving foreign exchange reserves, which often face strain due to large-scale overseas purchases of precious metals.
The duty hike also affects imports routed through the preferential quota arrangement with the United Arab Emirates. These shipments had previously enjoyed reduced tariff rates but will now face the revised higher taxation.
Alongside bullion, the government has updated tax rates on jewellery findings — small essential parts used in ornament manufacturing, including hooks, clasps, clamps and screw backs. Gold and silver findings will now attract 5 per cent customs duty, while platinum components will carry a 5.4 per cent levy.
The changes were introduced by the Department of Revenue through amendments to customs notifications issued in earlier years, including 2018 and 2021.
Market analysts say the increased import burden could directly impact retail jewellery prices and may slow consumer demand in the near term. The jewellery industry is expected to reassess pricing and procurement strategies as businesses adjust to the new cost structure.
The move is also being seen as part of broader efforts to manage the trade deficit while encouraging more disciplined import patterns in the precious metals sector.
