Govt cuts customs duty on gold, silver, mobile phones

Gold prices crash by Rs 3,350, silver plummeted by Rs 3,500

In a major policy shift aimed at enhancing domestic manufacturing and export competitiveness, the government announced significant reductions in customs duties on a broad spectrum of products on Tuesday. The move targets various sectors including precious metals, electronics, critical minerals, and seafood, among others.

Finance Minister Nirmala Sitharaman unveiled the new customs duty structure, which lowers the basic customs duty (BCD) on gold, silver, platinum, and other precious metals. The duty on coins of precious metals, gold/silver findings, and gold and silver bars has been reduced from 15 per cent to 6 per cent. Similarly, duties on gold and silver dore have been slashed from 14.35 per cent to 5.35 per cent, while the levy on platinum, palladium, osmium, ruthenium, and iridium has been cut from 15.4 per cent to 6.4 per cent.

This move is expected to address longstanding demands from the gems and jewellery sector for more favourable conditions to enhance exports and manufacturing.

However, after the announcement, gold prices tumbled by Rs 3,350 to Rs 72,300 per 10 grams in the local market amid subdued demand by jewellers. On Monday, the precious metal rates had closed at Rs 75,650 per 10 grams.