Indian gold import duties reduced to the lowest level in over a decade

Footnotes

1 Basic customs duty was reduced from 10% to 5% and Agriculture and Infrastructure Cess (AIDC) cut from 5% to 1%.

2The customs duty on silver too has been reduced by the same amount and that of platinum has been cut from 15.4% to 6.4%.

3Indexation is used to adjust purchase prices of asset for inflation before calculating the tax liability on its capital gains.4Memorandum explaining the provisions in the finance bill, 2024, Government of India.

5< /a>Based on taxable income, different tax rates called slab rates are applied.6 The assessment year of 2026-27 would make this applicable for capital gains for 2025-26.

7Gold dust in diapers, secret land routes, high-seas drops - what's behind gold smuggling surge in India, The Print, 19 July 2024.

8Under the UAE- India Comprehensive Economic Partnership Agreement (CEPA), the import duty on platinum alloy is 5%.

9Landed cost includes the tax and carry cost over the international prices.

10The tariff value on gold and the foreign exchange value is notified by the Central Board of Indirect Taxes & Customs on a fortnightly basis.

11For example, RBI data shows a 30% growth y/y as of May 2024.

12< /sup>As of 25 July 2024

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