Govt proposes 12.5% rise in import duty on gold

The government on Friday proposed to increase import duty on precious metals, including gold, silver and platinum, a move which will make them expensive in the domestic market.

Finance Minister Nirmala Sitharaman said in her Budget speech that "it is proposed to increase custom duty on gold and other precious metals from 10 per cent to 12.5 per cent".

The similar hike was proposed for silver (including silver plated with gold and platinum); base metal clad with silver; platinum; and waste and scrap or precious metals.

Currently, these metals also attract 10 per cent import duty.

Now with hike in the duty, jewellery or other items made out of these precious metals will become expensive.

The decision to raise import duty on gold came at a time when the domestic jewellery industry was demanding a cut in the same.

The commerce ministry, too, had in past recommended for reduction in the duty.