Commerce Ministry proposes cut in gold import duty in Budget
New Delhi: The commerce ministry has sought reduction in the import duty on gold in the forthcoming budget with a view to pushing exports and manufacturing of the gems and jewellery sector, a source said.
In its budget proposals, the ministry has suggested its finance counterpart to consider a significant reduction in the import duty on the yellow metal, they said.
In the last Budget, the government has increased the import duty on the yellow metal to 12.5 per cent.
The gems and jewellery export industry has sought reduction in the import duty to 4 per cent in the budget, which is scheduled to presented on February 1.
Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November.
India's gold imports, which have a bearing on the current account deficit (CAD), fell about 7 per cent to $20.57 billion during April-November period of the ongoing financial year, according to the commerce ministry data.
Imports of the yellow metal stood at $22.16 billion in the same period of 2018-19.