India Budget 2024: Custom duties on gold, silver slashed down to 6 from 15%

Bal Krishen, Gulf News, July 23, 2024

This is the seventh time that Nirmala Sitharaman has presented the budget, which also provides for sizeable development works for Bihar and Andhra Pradesh. The governments in these two states are partners in the coalition government at the centre.

India cuts customs duty on gold and silver

e latest budget also slashed the customs duty on gold imports. That on gold and silver has been brought down to 6 per cent and on platinum to 6.4 per cent. A reduction in gold customs duties has been a constant demand for India's gold and jewellery trade, many of which also have a significant presence in the UAE and Gulf markets. The current customs duty on gold imports is 15 per cent.

More e-commerce hubs

India plans to create e-commerce hubs, which will also attract private sector expertise and funding. This is part of multiple initiatives to jumpstart growth for MSMEs and create new jobs.
In a major push that could incentivise multiple sectors of the economy, the financial minister said that the current customs duty regime would be reviewed in the next six months. This would help ease the duty structure and reduce disputes brought on by the current regime. Also, the GST (Goods and Service Tax) structure will be further simplified ed.

The Budget announced three schemes under employment generation incentives, aiming to pump in Rs2 trillion over the next five years.

Scheme A:
There is the direct benefit transfer of one month's salary in three instalments up to Rs15,000 for first-time employees registered under EPFO (Employees Provident Fund Organization). “Th is is a positive for the entire consumption economy,” said Bal Krishen, CEO of Century Financial.
“As per the latest May data, the number of new monthly subscribers under EPF sequentially increased by 11 per cent to 985,000. Assuming the current rate holds and with almost 1 million new additions benefiting from it every month, theoverall implications for India’s consumption economy would be positive.”

Scheme B:
Aim to create jobs in the manufacturing sector by giving incentives to employees and employers as per their fund contribution for the first four years of employment.

No more ‘angel tax’

The budget has called for the removal of the' angel tax' across the board, a move India's startup and investment scene willwelcome. This was a longstanding demand from the country's vibrant tech, retail, and fintech startup spaces.
Angel tax is levied on capital raised through share issuing by unlisted companies from an Indian investor. It comes into effect if the price of the newly issued shares is viewed as being over and above the fair market value of that company.

Major Indian cities to be given makeovers

The new budget also aims to give India's cities a much-needed urban makeover by formulating 'enabling policies andmarket-based mechanisms'. Plus, 14 of the country's largest cities will have the latest transit systems.

Emphasis on nuclear energy

The private sector will also create adequate nuclear energy capacity, which the FM says will be an integral part of India' energy mix in the future.

Tourism boost

Legacy destinations in Bihar and Orissa were the clear beneficiaries of the budget's focus on tourism development. According to the Financial Minister, the aim was to reinforce India's status as a ' global tourist destination, create jobs, and stimulate investments' in the sector.

Heavy support from private sector

Across multiple initiatives outlined in the Budget 2024-25, the financial minister has mentioned seeking private sector support. Industry sources say this is unprecedented in many ways and provides a clear picture of what the Indian economy needs—that is, more public-private partnerships

Source

Gulf News