Why the hike in import duty for gold, silver findings and coins? Policy makers say move aimed at tackling arbitrage

In a bid to remove the loophole of a tax arbitrage between different types of gold and silver items, the Finance Ministry on Tuesday raised import duty on gold and silver findings and coins of precious metals to 15 per cent. Higher imports of gold and silver findings — which are small components such as hooks, clasps, clamps, pins, screws used to hold the whole or a part of a piece of jewellery in place — led the government to hike the import duty for them at par with gold and silver bars.
Gold and silver bars faced a 15 per cent import duty, while gold and silver findings attracted 11 per cent import duty. Owing to this duty arbitrage, it was found that there was a significant surge in imports of gold findings in the last two months, a senior government official told The Indian Express.
You have exhausted your monthly limit of free stories.
Register to read more stories
Continue With:-
Google
Facebook
Email
Already have an account? Sign in