The duty drawback rate on gold has been increased by 15.6% from Rs.372.9 per gm to Rs.431.1 per gm, which will enable exporters to get higher returns on duty and taxes that were paid for the raw materials against the exported products.
Meanwhile, the duty drawback on silver jewellery has been reduced by 5% from Rs.4,332.2 per kg to Rs.4,105.6 per kg.
The previous revision in the gold duty drawback rate was done on 28th January, 2020, following which the gold price has risen steadily. The GJEPC represented the matter to the Department of Revenue and urged it to revise the drawback rates.
Colin Shah, Chairman, GJEPC, said, “The revision in duty drawback rates is a great move by the Department of Revenue, Ministry of Finance. Duty-free precious metal must be available to exporters so that they can compete in international markets. In view of unprecedented increase in the price of gold in the last couple of months, manufacturers who were exporting jewellery from domestically procured duty-paid gold were finding it unfeasible to execute export orders. The revision in drawback rates will provide much-needed relief to gold jewellery exporters.”
The latest notification from the Department of Revenue, Ministry of Finance came into effect on 15th July, 2020.