We can expect jewellery prices to soar as customs duty on precious metals, articles of gold, silver and platinum and costume jewellery have increased. This was announced by Finance Minister, Nirmala Sitharaman, on Wednesday in the Union Budget presentation. 

Adding to this issue is the increase in the basic customs duty on articles made from gold bars.

“I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum,” said FM in a budget speech in Parliament. 

During this budget, the centre did not raise the import duty on gold as it had already increased it to 12.5% from 7.5%. in July 2022. 

Silver saw the basic customs duty increase from 7.5% to 10%. “Increase in import duty will raise prices of silver and silver jewellery, which will impact demand and will also be detrimental to refineries,” said CRISIL in a report.

Precious metals import duty saw an increase from 22% to 25%. 

Industry body Gem & jewellery export promotion council (GJEPC) said that the industry had recommended reduction in import duty on gold/silver and platinum, which has not been considered in the Budget. “Council will continue to pursue the same with the government for the overall welfare of the industry,” said GJEPC.

The council said that the rise in import duty will increase the prices of silver products in domestic markets.