Budget 2024: Custom duty on yellow metal reduced to 6%

Finance Minister Nirmala Sitharaman on Tuesday also announced that BCD (basic custom duty) on yellow metal has been decreased to 6 per cent.

Sitharaman has also reduced custom duty on mobile phones.

The Finance Minister presented the Budget with a computer tablet covered in a traditional 'bahi-khata' style pouch in a paperless manner, as she had done in previous years.

Her Budget for the fiscal beginning April 2024 (FY2024-25) is the Modi government's 13th straight Budget since 2014 (including two interim Budgets presented ahead of general elections in 2019 and 2024). She was appointed as the finance minister when Narendra Modi swept to power again in the 2019 election and presented her maiden Budget on July 5, 2019. 

"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent," said Sitharaman in her speech today.

The reduction in basic customs duty of gold, silver and platinum has been a long pending demand of the gems and jewellery industry.

Sitharaman also proposed reduction in basic customs duty on certain brood stocks, shrimps and fish feed to 5 per cent.

Other Metals

She further added that steel and copper are important raw materials. To reduce their cost of production, I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap.

Earlier this year, the Finance Ministry had increased import charges for gold and silver finds, coins, and used catalysts containing precious metals. This was done to eliminate the tax benefit of importing gold and silver in the form of finds rather than bars.

She had announced that import duty on gold and silver findings, as well as coins made of precious metals, will henceforth be 15 per cent. This comprises 10 per cent basic customs duty (BCD) and 5 per cent AIDC (agriculture infrastructure development cess). There will be no Social Welfare Surcharge. Previously, duty was 10 per cent. "Gold or silver findings" refers to a tiny component, such as a hook, clasp, clamp, pin, catch, or screw back, that is used to secure the entire or a portion of a piece of jewellery.