There is no need to lower the tax given the surge in revenue from the import of gold: Secretary of Revenue

There is no need to lower the tax given the surge in revenue from the import of gold: Secretary of Revenue

It is anticipated that 800 tons of yellow metal would be imported in 2023–2024.

In an effort to close the current account deficit, the government raised the import tariff on gold in 2022 from 10.75 percent to 15 percent.

According to a senior Finance Ministry official, the government does not want to lower the 15% import fee on gold since it anticipates that 800 tons of the yellow metal would be shipped in 2023–2024, which will increase income.

"A suggestion to lower the tax on gold is not there. Our income from the import of gold is substantial. Thus, at this time, neither a case nor a suggestion exist. 617 tons of gold were imported throughout the first nine months of the current fiscal year. Thus, imports of gold should exceed 800 tons at current pace, according to Rajesh.And in an interview with Moneycontrol, Secretary Sanjay Malhotra said.

It is anticipated that imports would rise to 800 tons this fiscal year from 678 tonnes in FY23. In July 2022, the government raised the import tariff on gold from 10.75 percent to 15 percent in an effort to lower the current account deficit. The business is requesting a decrease in import duties because they encourage more smuggling.

"So, whatever the consequences of smuggling... I am getting about 40 per cent more revenue - between 10.75 per cent to 15 per cent, which constitutes a 40 per cent increase," said Malhotra.

In the non-Covid year 2019–20, imports of gold were 720 tons, compared to 651 tonnes in 2020–21. In 2021–2022 and 2022–2023 respectively, 879 and 678 tons of gold were imported.

According to him, imports of gold have significantly decreased since the government placed a 15 percent import charge on the metal in 2022.

In an effort to lower the import tariff on gold bars (7,108) from 15% to 4%, the Gem and Jewelery the promotion of exports Council (GJEPC) has proposed removing the duty barrier, which would have saved the sector around Rs 982.16 crore and increased efficiency. may aid in the production of capital. Additionally, the GJEPC suggested lowering the import tariff on silver bars (7,106) from 10% to 4%.

The import tax on silver was raised in the Budget 2023–2024 to match the gold duty structure. In contrast, the Agriculture Infrastructure and Development Cess on imports was raised from 2.5 percent to 5 percent, and the basic customs tax on silver was raised from 7.5 percent to 10 percent.

The government implemented an AIDC cess on certain commodities in the Budget 2021–2022 in order to fund agricultural infrastructure.