India's bullion industry traders have cried foul over a 1% excise duty that the government announced on gold, silver and other precious metals in the annual budget presented in the parliament on Monday. Presenting the annual budget in the Parliament, India's Finance Minister Pranab Mukherjee proposed 1% central excise duty to be imposed on jewellery and articles of gold, silver and precious metals sold under a brand name.
Indian bullion industry leaders criticised the hike in the central excise duty on jewellery articles of gold, silver and other precious metals. Many bullion traders said that the government decision to increase excise duty will lead to smuggling of gold. Gold and Silver prices in rupee terms have hit new all time high this year and India`s demand has continued to recover after the slump of 2009.
Bullion industry traders have been demanding the government to waive off tariff for gold and silver imports in the budget. In 2010, the Indian government raised customs duty on gold by Rs.100/10 gm while duty on silver was raised to Rs.1,500/kg from Rs.1,000/kg.
Indian bullion industry leaders criticised the hike in the central excise duty on jewellery articles of gold, silver and other precious metals. Many bullion traders said that the government decision to increase excise duty will lead to smuggling of gold. Gold and Silver prices in rupee terms have hit new all time high this year and India`s demand has continued to recover after the slump of 2009.
Bullion industry traders have been demanding the government to waive off tariff for gold and silver imports in the budget. In 2010, the Indian government raised customs duty on gold by Rs.100/10 gm while duty on silver was raised to Rs.1,500/kg from Rs.1,000/kg.
