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India is the largest importer of gold, which mainly caters to the demand of the jewellery industry

Budget 2023: Will govt cut import duty on gold?

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry

Budget 2023: As the government is looking to push exports and manufacturing of the gems and jewellery sector, reports suggest that the government could consider lowering the import duty on gold in the upcoming budget on feb 1st.
<h3>BUDGET 2023- IMPORT DUTY</h3>
The basic customs duty on gold is currently at 12.5 per cent but according to reports, the government could consider lowering the import duty on gold to boost shipment amidst a slowdown in demand in the US and Europe and a forecast of recession in the western world.&nbsp; India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. Gems and jewellery exports fell 27 per cent to $2.5 billion in November from $3.46 billion in October. Industry experts say that recessionary conditions next year may pose further challenges. Customs duty hikes are being considered on private jets, helicopters, high-end electronic items, plastic goods, jewellery, high-gloss paper and vitamins, sources said.
Not only this, the government would receive a big boost in revenues, both customs and GST, by slashing the import duty on gold to a level that makes smuggling totally unattractive.

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