Union Budget 2026: No change in gold, silver import duties
What's the story
The Indian government's Budget 2026 has kept the customs duty rates for gold and silver imports unchanged. Importers will continue to pay the same duty rates as before although the bullion and jewelry sectors had urged the government to cut import duties. Currently, all forms of gold imports attract a 6% duty comprising a 5% basic customs duty (BCD) and 1% agriculture infrastructure and development cess (AIDC).
Duty differentiation
Silver imports taxed at 6% for eligible residents
Silver imports are taxed at a 6% duty for eligible Indian residents. However, ineligible ones have to shell out a whopping 36% tax. This includes a 35% basic customs duty and the same 1% AIDC as gold. Both metals also attract a uniform Goods and Services Tax (GST) of 3%.
Market impact
No update on bullion import duty
There was some confusion when Finance Minister Nirmala Sitharaman announced a reduction in the tariff rate on all dutiable goods imported for personal use from 20% to 10%. However, market experts have clarified that this does not include gold and silver jewelry or any other precious metals. Jateen Trivedi of LKP Securities said there was no update on import duty for bullion in Budget 2026, which led to a negative reaction from domestic gold and silver markets.