Budget 2024 Updates: Gold slips ₹4,200/10 gm after custom duty reduction on bullion

23 Jul 2024 , 03:32 PM

Despite a reduction in the customs tariff on gold and silver to 6%, bullion prices plummeted dramatically on Tuesday. While August gold futures lost 6%, or ₹4,268 per 10 gm, to record a day low of ₹68,500, silver September futures on the MCX fell ₹4,928 per kilogramme, or 5.5%, to an intraday low of ₹84,275.

The reaction was sparked by Finance Minister Nirmala Sithraman’s announcement of the cuts during her Budget speech. She delivered her seventh Union Budget on Tuesday.

To increase domestic value addition in gold and precious metal jewellery in the country, I propose lowering customs charges on gold and silver to 6% and on platinum to 6.4%, according to Sitharaman’s budget address.

In this year’s Union Budget, the Indian jewellery industry urged that the Narendra Modi-led government reduce gold import duties. It also requested an additional 0.5% concession on gold imports through the India International Bullion Exchange (IIBX), as well as authorisation to export through the IIBX. The sector also demanded that all gold imports be allowed only through the India International Bullion Exchange (IIBX).

The industry argued that the move would streamline the process, lower transaction costs, increase transparency, and may attract more international commerce to India’s gold market.

The sector had also campaigned for an exemption on interest income from Sovereign Gold Bonds (SGBs).

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