In a move to address tax advantages associated with the import of gold, silver, and precious metal components, the Finance Ministry has announced a significant hike in import duties, effective from January 22, 2024.
Gold and Silver Findings, Coins of Precious Metals: The import duty on gold and silver findings, including small components such as hooks, clasps, clamps, pins, catches, and screw backs used in jewelry, has been raised to 15 percent. This comprises a Basic Custom Duty (BCD) of 10 percent and 5 percent of the Agriculture Infrastructure Development Cess (AIDC). Notably, there will be no Social Welfare Surcharge (SWC) applied. Previously, the duty stood at 10 percent.
The adjustment in import duties is aimed at eliminating the tax advantage previously associated with the importation of gold and silver components.
The Finance Ministry has also increased the import duty on spent catalysts containing precious metals to 14.35 percent. This includes a Basic Custom Duty of 10 percent and an Agriculture Infrastructure Development Cess at the rate of 4.35 percent. Social Welfare Surcharge (SWS) will be applicable. Spent organic-based catalysts containing precious metals, traditionally treated through incineration for precious metal recovery, are impacted by this change.
The move is expected to not only address tax-related concerns but also potentially impact the recycling and recovery practices of spent catalysts containing precious metals.
