New Delhi: Silver became dearer as the Customs duty levied on the metal was increased in Union Budget 2019, announced by Finance Minister Nirmala Sitharaman on Friday. The rate of duty charged on silver, (including silver plated with gold or platinum) unwrought, semi manufactured or in powder form, went up from 10% to 12.5%.
Import duty on gold was also increased to 12.5% from current level of 10%, making the precious metal dearer.
Ahead of the budget, silver prices fell by Rs 45 to Rs 37,030 per kg in futures trade Friday amid profit-booking by speculators at current levels.
India is the twelfth largest producer of silver in the world. The country has one of the world’s largest silver markets and depends on imported metal to satisfy the requirements. Jewellery and silverware makes up 50 per cent of the total silver demand in the country.
In the last budget presented in the parliament in 2018, Silver became costlier. Silver was charged at 3 per cent of the aggregate duties of Customs. In 2017 budget silver attracted a countervailing duty of 12.5 per cent, which was nil in 2016.
The GST on Silver exists at 3 per cent. Silver jewellery manufacturers are seeking duty drawback to foreign buyers so that there is a boost in the exports.
Hindustan Zinc of the Anil Agarwal-led Vedanta group is one of the largest firm dealing with silver. The company produces 95 per cent of the silver in the country.
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