India’s Finance Ministry has hiked import duties on gold and silver findings and coins of precious metals to 15 per cent from the existing 10 per cent. The raised duty will be through Infrastructure Development Cess (AIDC), a notification by the Central Board of Indirect Taxes and Customs stated.

Findings are items such as line hooks and clips, components of jewellery making. Since the past few months, the industry has been complaining of a surge in imports of gold findings, which includes hooks, clasps and other components. The government has now stepped in to bring duties on a par.

Duty on spent catalysts used to extract precious metals to 14.35 per cent has also been hiked, including 10 Basic Custom Duty (BCD) and 4.35 per cent AIDC (Agriculture Infrastructure Development Cess) with exemption from Social Welfare Surcharge (SWS).

The new rates came into effect on January 22.

The government had increased the import duty on silver dore, bars and articles during the 2023 budget, to align them with that on gold and platinum.

The aim of the initiative is to prevent evasion of duties on gold and silver bars, following an uptick in imports of gold findings such as hooks, clasps, and other components used in jewellery crafting, the report said quoting a government official.

India holds the position of being the world’s second-largest consumer of gold, with almost all supplies coming from imports.