Gold prices drop after Nirmala Sitharaman announces import duty cut in Budget 2024

PTC News Desk: On Tuesday saw the announcement by Finance Minister Nirmala Sitharaman of a 15 per cent reduction in import taxes on gold and silver, two precious metals.

“In my Union Budget 2024 speech in the Lok Sabha, I propose to reduce customs duties of gold and silver to 6 per cent in order to enhance domestic value addition in gold and precious metal jewellery,” the minister stated.

Following the government’s statement, the stock market saw a sharp increase in shares of gold and jewellery merchants, while gold futures saw a roughly 5 per cent decline in trading.

Senco Gold’s shares on the Bombay Stock Exchange shot up 6.16 percent to trade at ?1,000.80 apiece, Rajesh Exports’ shares shot up 5.49 percent to Rs 313.90, and PC Jeweller’s shares shot up 5 percent to trade at Rs 74.16, which is also its upper circuit limit, according to PTI.

The PTI article also stated that shares of Kalyan Jewellers India gained 1.54 per cent to Rs 537.05 apiece, Tribhovandas Bhimhji Zaveri increased 2.79 per cent to Rs 140.20, and shares of Titan Company increased 3.66 per cent to Rs 3,371.65 apiece on the exchange.

Other Budget 2024 announcements

The finance minister declared that blister copper and ferro nickel would no longer be subject to basic customs duties, adding that steel and copper are crucial raw resources.

In her statement, Sitharaman stated, “I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap.” Sitharaman increased the standard deduction by 50 per cent to Rs 75,000 in the Budget 2024, which was the largest alleviation for the middle class. In the context of the new income tax system, she also adjusted tax slabs.

According to her, salary workers under the new tax system might save as much as Rs 17,500 in income tax a year thanks to the adjustments made in the Budget. It is suggested that the yearly standard deduction for salaried personnel be raised from Rs 50,000 to Rs 75,000. In a same vein, it is suggested that pensioners’ family pension deduction be increased from Rs 15,000 to Rs 25,000.

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