Union Budget 2024-25: Customs Duty Relief for Precious Metals
In the 2024-25 Union Budget, Finance Minister Nirmala Sitharaman announced significant reductions in customs duty on precious metals, including gold, silver, and platinum.
Silver Price Drop Expected
The customs duty on silver is reduced from 15% to 6%, a move that is expected to lower silver prices significantly. This comes as a welcome surprise for investors and buyers.
Relief for Jewelry Industry
The reduction in customs duty brings relief to the jewelry industry, which has been facing high costs due to the previous 15% tax. The industry expects a surge in business as prices become more affordable.
Stock Surge for Gold and Jewelry Retailers
Shares of gold and jewelry retailers witnessed a surge following the budget announcement. Senco Gold, Rajesh Exports, PC Jeweller, Titan Company, Tribhovandas Bhimhji Zaveri, and Kalyan Jewellers India all saw significant gains.
Custom Duty Reduction Details
* Gold: Customs duty reduced from 15% to 6%
* Silver: Customs duty reduced from 15% to 6%
* Platinum: Customs duty reduced from 15% to 6.4%
This duty reduction has been a long-standing demand from the jewelry trade. The high customs duty was seen as a financial burden, limiting demand and growth in the sector.
Impact on Precious Metals Market
Silver prices have already seen a sharp decline in anticipation of the duty reduction. The price of silver had fallen by over Rs 1,350 on Friday before the budget announcement. The price is expected to decrease further as the reduced duty takes effect.
Overall, the customs duty reduction is a positive step that is expected to lower prices of precious metals, boost the jewelry industry, and provide relief to buyers and investors.
