Union Budget 2024 reveals lower customs duty on gold, silver, and platinum; their prices are lowered as a result. According to the market report, the company’s relocation is expected to drive demand, especially for jewelry.
Budget 2024: During the presentation of the full budget for the financial year 2024–25, FM Nirmala Sitharaman had a surprise for the investors in precious metals. The finance minister announced a cut in customs duty on gold, silver, and platinum, and as a result, the public is hopeful of a change for the worse in prices.
Seeking to boost the demand for gold and silver, Sitharaman, in her budget speech in the Lok Sabha on Tuesday, proposed to cut down customs duty on precious metals to 6 p.c.
She also declared the customs duty for platinum to be 6 percent, up from the previous 10 percent. 4 percent. By doing so, the government expects the prices of gold, silver, and platinum to come down, which will benefit buyers and investors.
The jewelry traders have been in a consistent business campaign for the slashing of customs duties on precious metals for quite some time now. However, prior to July 1, 2013, an effective rate of 15 percent applied to these metals, which were traded at an unfair rate as it burdened them with huge expenses.
These concerns have been addressed by the Modi government through this particular budget, where it has cut customs duties.
The lift comes precisely at a point when gold and silver prices for buyers in India are at off-the-rack levels. Presently, one can buy only ten grams of gold for ₹ 73,000, while at the start of the year 2024, it would cost only ₹ 63,870 per ten grams, implying that there has been a 15 percent increase in the price of gold. It is now supposing that these escalating prices will be eased by the relaxations that have occurred in customs duty.
