Steep Hike in Import Duty on Gold and Silver

13-May-2026 05:28 PM

New Delhi. With the objective of curbing the rapid outflow of precious foreign exchange, the Prime Minister recently appealed to the public to reduce their consumption of edible oils, exercise restraint in the use of petrol and diesel, and refrain from making unnecessary purchases of gold and silver until the situation normalizes. Since then, there had been speculation that the government would take precautionary measures to discourage people from purchasing these commodities. This has now materialized in the form of an increase in the import duty on gold and silver.

Previously, gold and silver were subject to a total customs duty of 6 percent, comprising a basic import duty of 5 percent and an Agriculture Infrastructure and Development Cess of 1 percent.

The government has now raised the basic import duty to 10 percent and the Agriculture Infrastructure and Development Cess to 5 percent, thereby increasing the total customs duty from 6 percent to 15 percent. This duty hike has been implemented with immediate effect.

Due to the ongoing crisis in West Asia and the rise in global market prices, the import of edible oils has become significantly more expensive. A leading industry body is currently urging the government to provide freight subsidies in order to stabilize domestic market prices for edible oils.

However, the Prime Minister desires a reduction in the country's consumption of edible oils. This has created a dilemma, particularly given that domestic market prices for edible oils are already hovering at a very high level.