Finance Ministry should reduce customs duty of gold and silver, says Yogesh Singhal, Chairman, Bullion and Jewellers' Association

Ahead of the presentation of the Union Budget 2022-23, the gem and jeweler industry asked for the reduction in customs duty of gold, silver and diamond. Following this, the customs duty of diamonds has been reduced to 5 per cent from the earlier 7.5 per cent.

New Delhi:Ahead of the presentation of the Union Budget 2022-23, the gem and jeweler industry asked for the reduction in customs duty of gold, silver and diamond. Following this, the customs duty of diamonds has been reduced to 5 per cent from the earlier 7.5 per cent.

However, the customs duty of gold and silver remain unchanged. "The gold and silver traders are feeling discouraged and it seems that the government has done step-motherly treatment towards them", said Yogesh Singhal, Chairman, Bullion and Jewelers' Association. According to Singhal, the reduction of customs duty would reduce the smuggling of gold and thus save huge revenue loss on the government ends.

"Customs Duty, GST and Income tax are imposed when gold is imported legally. However, gold that comes illegally do not fall under a custom duty, income tax and GST. So all kinds of taxes are waived by the government. Whatever gold is imported, it is done illegally through hawala channels. So the foreign currency which is supposed to come in the bank doesn't get in and instead go through hawala. So, the government face loss from it as well", said Yogesh Singhal.

ANI