The Finance Minister Nirmala Sitharaman’s presentation of the Union Budget of the financial year 2021-22, injected positivity in the gold industry. With her announcement of the custom duty being waivered and bringing them closer to the previous level filled the industry with joy and hope for the current fiscal year.
Gold and silver presently attract a basic customs duty of 12.5 per cent. The custom duty on gold has been reduced from 12.5 to 7.5% which has pleasantly been beyond expectations.
Gold dore bars and silver dore bars will attract customs duty of 6.9 and 6.1 per cent, respectively, as opposed to the existing rates of 11.85 per cent and 11 per cent respectively. These items will also attract Agriculture Infrastructure and Development Cess at the rate of 2.5 per cent.
While gold and silver will attract agriculture infrastructure and development cess at the rate of 2.5 per cent and social welfare surcharge of 10 per cent. Including the GST, the total tax on gold and silver would be around 13.75 per cent, which was at 15.50 per cent, earlier
Since the duty was raised from 10 per cent in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, custom duty on gold and silver has been rationalised.
As far as post budget reactions are concerned, gold prices plunged over Rs 2,100 on Monday after the Union Finance Minister Nirmala Sitharaman announced the changes in customs duty rate for precious metals.
The reduction in duty has been warmly welcomed by the entire jewellery and bullion industry as it will result in an increase in physical demand for the yellow metal (which has been dampened due to the pandemic) and at the same time it will compress down illegal gold importing channels.
Further more , income tax assessment has been reduced from 6 years to three years. This will reduce the burden on the tax payers.
Prithviraj Kothari of RiddiSiddhi Bullions Limited feel that the government has given its best and introduced many good schemes, which will work in the favour of the Indian economy. Lot of money has been pumped in to the economy for revival and sustainability. We will witness a significant growth and developments in the form of infrastructure, jobs, industrial development.etc
The much awaited budget during the pandemic has lived up to the expectations as the government has tried from all sides to push economic growth and development.
The bullion king of India believes that the budget is a sure shot 10/10 as players across the sectors has been quite satisfied with the new policies and its spill effect was seen on the equities markets as it rose high