Good news for jewellery lovers in India! The Union Budget 2024 has reduced import duties on gold, silver, and platinum. This move is expected to bring down prices, making these precious metals more affordable. As a result, buyers can expect to see a boost in jewellery sales, especially during the upcoming festive season. In this article, we will explore the details of these changes and how Cheaper Gold and Silver can benefit you as a jewellery buyer.
Lower Import Duties on Precious Metals
The government has decided to lower import duties on gold, silver, and platinum. The basic customs duty on these metals has been reduced to 5% from the previous 10%. Additionally, the Agriculture Infrastructure & Development Cess (AIDC) on these metals has been brought down to 0.35% to 1%, depending on the type of metal, from 4.35% to 5.4%.
This reduction in duties means that the total tax on imported gold (including GST) has decreased from 18.5% to 9.2%. This significant drop in import duties is expected to make gold, silver, and platinum more affordable for buyers.
Industry Reactions
The jewellery industry has welcomed these changes. Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers, stated, “We welcome the 2024 Budget’s progressive measures to reduce customs duties on gold, silver, and platinum. These changes, coupled with the government’s commitment to enhancing domestic value addition and craftsmanship, are poised to significantly benefit the jewellery industry, further contributing to the sector’s growth. The new tax regime, with its focus on increased disposable income, will boost demand for jewellery as consumers will invest in asset creation.”
Boost to Jewellery Sales
The reduction in import duties is expected to boost jewellery sales, especially during the festive season. Abneesh Roy, Executive Director at Nuvama Institutional Securities, said, “The reduction of basic customs duty on gold, silver, and platinum to 5% from 10%, along with the reduction of AIDC, means that the total duty incidence on imported gold (including GST) comes down to 9.2% from 18.5%. This should help spur jewellery demand ahead of the festive season.”
Impact on Prices
Lower import duties mean that the prices of gold, silver, and platinum will come down. This will make jewellery made from these precious metals more affordable for buyers. With gold prices currently at all-time high levels, this move is expected to encourage more people to purchase jewellery. Indians buy Gold and Silver more than they buy Platinum so they will get Cheaper Gold and Silver now.
Positive Effects on the Economy
The reduction in import duties on precious metals is not just good news for buyers but also for the economy. Kumar Rajagopalan, CEO of the Retailers Association of India, said, “The reduction of duty on gold, precious metals, and mobile phones will also provide a significant boost to these sectors, particularly during the festive season.”
Enhanced Consumer Spending
Amit Pratihari, Managing Director at De Beers Forevermark, also sees positive outcomes from these changes. He stated, “The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbour rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness.”
Additional Measures to Support the Industry
The Budget also introduced other measures to support the jewellery industry. The reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry’s expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance.
Conclusion
In summary, the Union Budget 2024 has brought down import duties on gold, silver, and platinum, making these precious metals more affordable for buyers. This move is expected to boost jewellery sales, especially during the festive season. Industry stakeholders are optimistic about the positive impact on consumer spending and the overall economy. As a jewellery buyer, you can look forward to more affordable prices and a wider range of options in the market.
By reducing import duties, the government aims to make gold, silver, and platinum more accessible to everyone. This Budget 2024 cheaper gold and silver initiative is indeed a welcome change for jewellery buyers in India.
