In budget 2024, the finance minister has proposed to reduce customs duties on gold and silver to six per cent from 15 per cent earlier.
Says Sachin Kothari, Director Of Augmont - Gold For All, “The finance minister has made a big announcement regarding the reduction in gold and silver customs duty from 15 per cent to six per cent. This announcement is a welcome step for the bullion industry, as bullion market participants have been waiting for this duty cut for a long time.”
Bullion market participants were expecting a 5 per cent cut in duties, but FM has announced a nine per cent cut, so it beats expectations.
“Indian consumers would be able to buy now at a 9 per cent cheaper rate from today, so it will boost physical demand. MCX Gold prices have fallen by Rs 4,000 from Rs 73,000 to Rs 69,000 as a knee-jerk reaction after this announcement and are expected to fall more up to around Rs67000/ 10 gm as per international pegged price,” says Kothari.