Gold stocks were shining on Tuesday after the finance minister proposed slashing customs duty on precious metals.
What Happened: Kalyan Jewellers, PC Jewellers, Titan — the parent company of Tanishq — and other gold stocks soared after Nirmala Sitharaman proposed cutting basic customs duty on gold and silver to 6%. Platinum also saw a reduction in customs.
"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6% and that on platinum to 6.4%," Sitharaman said.
The gems and jewellery industry has been advocating for a reduction in the basic customs duty (BCD) on gold, silver and platinum, viewing the previous duty exorbitantly high at around 15%.
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Here’s a table presenting the details for precious metals and their respective duty rates:
| Item | Rate (%) | New Rate (%) |
|---|---|---|
| Gold bar | 15 | 6 |
| Gold dore | 14.35 | 5.35 |
| Silver bar | 15 | 6 |
| Silver dore | 14.35 | 5.35 |
| Platinum, Palladium, Osmium, Ruthenium, Iridium | 15.4 | 6.4 |
| Coins of precious metals | 15 | 6 |
| Gold/Silver findings | 15 | 6 |
| Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds, and catalytic converters | 7.5 | 5 |
| Bushings made of platinum and rhodium alloy when imported in exchange for worn out or damaged bushings exported out of India | 7.5 | 5 |
Additionally, the finance minister has also removed basic customs duty on ferro nickel and blister copper to reduce the cost of production of important raw materials like steel and copper.
"I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5% on copper scrap," she added.
Price Action: The gold markets rejoiced at the announcement as most gold stocks jumped on Tuesday.
Shares of Kalyan Jewellers were up 1.29% at ₹536.15. Titan was trading 6.72% high at ₹3,473.10. PC Jewellers gained 5% to trade at ₹74.14. Senco Gold was up 4.93% at ₹988.
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