Gold & Platinum duty rate increases by Two percentage points; Silver by Four percentage points
IT is an all-out war against Gold imports. The festival season and the marriage season are around the corner and the common man still continues his fascination for the yellow metal in spite of what the Finance Minister preaches. Seizures of smuggled gold at airports and that too in Kilograms is an everyday affair. Still there are passengers ready to take the risk - concealing it in their undergarments or body parts which are covered by these undergarments.
The government this time around had made their intentions clear - that they would be increasing the import duty on gold and other luxury items. It was only a matter of time.
Yesterday was the day the Government hiked the Customs duty and Additional duty on certain items of Gold& Silver & Platinum. The new rates are applicable from 13th August, but the notification was available only in the evening.
In fact, PTI had carried the following news item on its website -
Changes in duties on gold, silver to be announced later in day
12.52 HRSIST: Finance Minister P Chidambaram today said that he would come out with changes in the import duty of gold, silver and other non-essential items later in the day. On when the government will table changes in the tariffs, he said, "later in the afternoon".
So, one may argue that in any case these enhanced duty rates were not in vogue in the morning and early afternoon.
Take a look at the amendments on the Customs & Central Excise side -
Sl. No. in Notification No. 12/2012-Cus | Description | previous rate | hiked rate |
|---|---|---|---|
116 | *Gold ores and concentrates for use in the manufacture of gold | 6% | 8% |
318 | *Gold dore bar, having gold content not exceeding 95% | 6% | 8% |
320 | *Silver dore bar having silver content not exceeding 95% | 3% | 7% |
321 | Gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, imported by the eligible passenger | 8% | 10% |
322 | Silver, in any form including ornaments, but excluding ornaments studded with stones or pearls, imported by the eligible passenger | 6% | 10% |
323 | Gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, other than imports of such goods through post, courier or baggage. | 8% | 10% |
324 | Silver, in any form including silver coins having silver content not below 99.9%, other than imports of such goods through post, courier or baggage. | 6% | 10% |
328 | Platinum | 8% | 10% |
*Additional Duty
Similarly, CE Notification No. 12/2012-CE dated 17.3.2012 is also amended to hike the excise duty.
Sl. No. in Notification No. 12/2012-CE | Description | previous rate | hiked rate |
|---|---|---|---|
189 | Gold bars, other than tola bars, bearing manufacturer‘s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of- (i) (a) Gold ore or concentrate; (b) Gold dore bar; (ii) Silver dore bar | 7% 7% | 9% 9% |
190 | Silver manufactured in a factory starting from the stage of- (a) Silver ore or concentrate; (b) Silver dore bar; or (c) Gold dore bar. | 4% | 8% |
191 | The following goods manufactured or produced during the process of copper smelting starting from the stage of copper ore or concentrate in the same factory namely:- (i) gold bars, other than tola bars, bearing manufacturer‘s or refiner‘s engraved serial number and weight expressed in metric units and gold coin of purity not below 99.5%; (ii) Silver in any form, except silver coins of purity below 99.9% | 7% 4% | 9% 8% |
191A | Silver produced or manufactured during the process of zinc or lead smelting starting from the stage of zinc or lead ore or concentrate. | 4% | 8% |
Notification No. , Dated: August, 13, 2013 and Notification No. , Dated: August, 13, 2013