Government of India on 21 June 2013 increased the duty drawback rate of gold ornaments by 73 rupees to 173.7 rupees per gram. The decision to increase the drawback rate was taken with an aim to increase jewellery exports.
Duty drawback is the refund of duties on imported inputs for export items.
Central Board of Excise and Customs released a notification in this respect in New Delhi. The notification claimed that the drawback or tax-refund rate for articles of jewellery and parts thereof made of gold is 173.70 per gram of net gold content (.995 or more purity) in the jewellery. Earlier, the drawback rate on gold jewellery was 100.70 rupees per gram.
The drawback rate has been increased by the government at the time when access in imports of gold has shown an adverse impact on the Current Account Deficit (CAD) of the country. CAD is likely to be at a high level of around 5 percent of the Gross Domestic Product (GDP).
Earlier, to curb the imports and manage CAD, the Government raised the import duty on Gold to 8 percent from previous six percent. Apart from this, restriction on import of gold was sanctioned on banks by Reserve Bank of India (RBI).
Central Board of Excise and Customs
Central Board of Excise and Customs (CBEC) is a part of the Department of Revenue under the Ministry of Finance, Government of India. It deals with the tasks of formulation of policy concerning levy and collection of Customs & Central Excise duties and Service Tax, prevention of smuggling and administration of matters relating to Customs, Central Excise, Service Tax and Narcotics to the extent under CBEC's purview. The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Service Tax Commissionerates and the Central Revenues Control Laboratory.
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.