Shares of Titan Industries, Tribhovandas Bhimji Zaveri and others declined in early morning trades after the government today increased Customs duty on gold by two percentage points, to eight per cent.
To arrest rising gold imports, which could widen the current account deficit (CAD), the government raised the duty for the second time in six months.
A notification by the Central Board of Excise and Customs said the import duty on standard gold bars, coins and platinum had been increased from six to eight per cent. The import duty on gold ores and concentrates used to manufacture gold was raised to six per cent. Excise duty on imports of gold dore bars (raw gold) has been raised two per centage points to seven per cent. The excise duty is a per cent lower than the Customs duty to incentivise local refineries to import raw gold and refine it here.
At 9:20AM, Titan Industries traded down 1% to Rs 276.40, Tribhovandas Bhimji Zaveri fell 0.6& to Rs 241 while PC Jewellers shed 1% to Rs 114 on the Bombay Stock Exchange.
