On Wednesday, as part of an initiative to enhance the operational capacity of the central bank, the Indian Union Government waived customs duty and agricultural cess on specific gold imports made by the RBI.
Goods such as gold-plated with platinum, in its raw or semi-manufactured state, and in powder form, imported by the central bank, will now be excluded from the financial jurisdiction of customs duty, which is typically imposed on such items.
This represents a notable exemption, considering that ordinarily, gold imports incur an import tax of 15 per cent. This adjustment follows the government’s decision to raise the import duty on gold and silver articles and coins to the aforementioned 15 per cent from the previous 10 per cent.
Following China, India ranks as the world’s second-largest consumer of gold. India’s average gold consumption amounts to 672.4 metric tons, trailing China’s 819.86 metric tons. India’s gold consumption has steadily risen over time.
During the fiscal year 2022-23, the Central Bank allocated a surplus amount of Rs 87,416 crore to the Union Government, according to The Free Press Journal.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)