Will gold be cheaper or dearer after Budget 2021? In chat with Anil Singhvi, IBJA President Prithviraj Kothari explains

Budget 2021: Finance Minister Nirmala Sitharaman today made announcements regarding customs duty on Gold and Silver. Will the gold and silver get cheaper? Zee Business Managing Editor Anil Singhvi speaks to Prithviraj Kothari, President of Indian Bullion and Jewellers Association’s (IBJA). 

The Finance Minister announced rationalisation of import duty on gold and silver from 12.5 per cent earlier to 7.5 per cent now and that effect has now come into the markets, Kothari said. The price of gold is cheaper by Rs 2 lakh per kg i.e. Rs 2000 on 10 gram, he added. 

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But in the international markets, the silver prices are up by 3 per cent. So the impact is not as much as was expected. 

On the issue of 2.5 per cent cess, the President is on the custom duty and not the entire price which means that the cess will be on the 7.5 per cent custom duty. 

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सोना चांदी खरीदने वाले लोगों के लिए बजट 2021 में क्या है खास? जानने के लिए देखिए IBJA के प्रेसिडेंट पृथ्वीराज कोठारी के साथ खास बातचीत#BudgetOnZee #Gold #Silver @IBJA1919 @PrithvirajRSBL pic.twitter.com/Kt24Lh06Xp

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He said that this was a welcome move and something above his expectations. He said that the industry was expecting it around 8 per cent. 

He said that the association was not too vocal about it because of the ongoing financial issues for the government because of the ongoing coronavirus pandemic. The association did not want to put undue pressure on the government. 

He lauded the overall budget and called it unprecedented. 

Commenting on the Budget 2021, Singhvi said that this budget was very good for the jewellery industry and they could not have asked for more.