Gold To Be Cheaper: Relief For Gold Buyers As Budget 2024-25 Reduces Customs Duty

Union Budget 2024 announces a reduction in customs duty on gold, silver, and platinum, bringing their prices down. The move is expected to boost demand, particularly for jewellery.

Union Budget 2024-25 has proposed to reduce the customs duty on gold to 6%.

Source : ABPLIVE AI

BUDGET 2024: In a significant announcement during the presentation of the full budget for the financial year 2024-25, Finance Minister Nirmala Sitharaman delivered a welcome surprise for those investing in precious metals. The finance minister declared a reduction in the customs duty on gold, silver, and platinum, which is expected to bring a notable decrease in their prices.

Customs Duty Reduced

During her budget speech in the Lok Sabha on Tuesday, Sitharaman proposed reducing the customs duty on gold and silver to 6 percent. Additionally, she announced a reduction in the customs duty for platinum to 6.4 percent. This move by the government is anticipated to lower the prices of gold, silver, and platinum, providing relief to buyers and investors.

Jewellery traders have been advocating for a reduction in customs duties on precious metals for an extended period. Previously, the effective rate of customs duty on these metals was 15 percent, which traders argued was excessively high, imposing a significant financial burden. The Modi government's decision to slash customs duties in this budget addresses these long-standing concerns.

Gold Price Surge In 2024

The relief comes at a time when gold and silver prices in India have been reaching unprecedented heights. Gold prices have soared to approximately ₹73,000 per ten grams, up from ₹63,870 at the beginning of 2024, marking a 15 percent increase. The reduction in customs duty is now expected to soften these escalating prices.

The record-high prices of gold and silver had been dampening demand, particularly for jewelry. Businessmen noted that the high prices had adversely affected sales, even during peak seasons. With the reduction in customs duty, the demand for gold and silver, especially jewellery, is likely to see a resurgence.

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