Big economic news has come out from New Delhi. The Central Government has made a major change in the duty on import of gold and silver, increasing it from 6 percent to 15 percent. After this decision, there was a sharp rise in the prices of gold and silver on the Multi Commodity Exchange (MCX) on Wednesday, which has increased the volatility in the market.
Record rise on MCX, gold and silver at new high
After the decision to increase the duty, today i.e. on May 13, an increase of about Rs 10,000 per 10 grams was recorded in the prices of gold in the futures market. Along with this, a rise of about Rs 18,000 per kg was also seen in the price of silver.
According to the latest data, 10 grams of gold on MCX has now reached the level of around Rs 1.63 lakh, while the price of 1 kg of silver has reached around Rs 2.97 lakh. This rapid growth has surprised both investors and businessmen.
Why was the import duty increased?
According to the order issued by the government, now 10% basic custom duty and 5% Agriculture Infrastructure and Development Cess has been imposed on gold. By combining these two, the total effective tax becomes 15%.
The government says that the objective of this step is to reduce the import of gold and silver, so that the pressure on the country’s foreign exchange reserves can be reduced. This decision has been taken to control the continuously increasing import bill which was affecting the trade deficit.
Impact of international tension also
According to experts, the effect of increasing tension between America and Iran is also being seen on the global commodity market. At such a time, this step of the Indian government can further affect the domestic prices of gold and silver. Amidst the instability in the international market, investors are turning to gold as a safe investment, due to which the prices are rising further.
Steps contrary to the decision of 2024
It is noteworthy that in the budget of 2024, Finance Minister Nirmala Sitharaman had reduced the import duty on gold from 15% to 6%, so that the prices could be controlled in the domestic market. But now the government has reversed this decision and increased the duty again, due to which a sudden big change has been seen in the market.
Impact on the market and future expectations
Analysts believe that after this decision, further fluctuations may be seen in the prices of gold and silver in the coming days. This will also have a direct impact on the jewelery market and may increase additional burden on customers’ pockets during the wedding season.
