India's Finance Ministry has notified a new rule which says duty on gold & silver will now be calculated on the value of the imported metal. Earlier, the duty was collected as a fixed amount irrespective of price movement.
The revised formula will help the central government to collect an additional Rs. 600 crore during the next 2 and half months.
For the consumer, the impact works out to an additional about Rs. 250 per 10 grams of gold.On silver, the additional burden works out to Rs. 1,600 a kg.
New rules also apply to imported platinum & diamonds also. The new rule has been made effective from 17-01-2012.
Mr S.K. Goel, Chairman, Central Board of Excise and Custom said, “The old rates were fixed about five years ago. In the last few years, Gold, Silver, platinum & diamonds prices have increased substantially so the change has been made to bring duties in line with market prices.”
Gold prices (10 gram) have gone up from Rs. 14,000 to Rs. 27,000 gram in the past two years, while silver prices (kg) have moved from Rs.11,000 to Rs 53,000.
In India, Gold, Silver, platinum & diamonds jewellery business works on pass through mechanism, so any increase will be borne by the consumer. Manufacturers and retailers' margin will not be affected.
The revised formula will help the central government to collect an additional Rs. 600 crore during the next 2 and half months.
For the consumer, the impact works out to an additional about Rs. 250 per 10 grams of gold.On silver, the additional burden works out to Rs. 1,600 a kg.
New rules also apply to imported platinum & diamonds also. The new rule has been made effective from 17-01-2012.
Mr S.K. Goel, Chairman, Central Board of Excise and Custom said, “The old rates were fixed about five years ago. In the last few years, Gold, Silver, platinum & diamonds prices have increased substantially so the change has been made to bring duties in line with market prices.”
Gold prices (10 gram) have gone up from Rs. 14,000 to Rs. 27,000 gram in the past two years, while silver prices (kg) have moved from Rs.11,000 to Rs 53,000.
In India, Gold, Silver, platinum & diamonds jewellery business works on pass through mechanism, so any increase will be borne by the consumer. Manufacturers and retailers' margin will not be affected.
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