Duty on Gold, Silver raised to 10%
In order to curb the increasing Current Account Deficit (CAD) the Centre hiked the customs duty on gold, platinum and silver to 10%. This initiative will bring in additional revenue of Rs. 4,830 crore.
As per the notifications by the Central Board of Excise and Customs the import duty on gold and platinum is increased from 8% to 10% and on silver it was raised by 4 % to 10%. This is the third time that the government has hiked the customs duty on gold this year in order to curb its imports as dollar outflows on this count are seen as mainly responsible for rapidly increasing CAD which touched a record high of 4.8 % in 2012-13. The government is aiming to restrain CAD at 3.7 % of the GDP this fiscal.