Centre Raises Import Duty on Gold and Silver to 15% to Curb Imports

The Central Government revised the customs duty on precious metals on 13 May 2026. Under the new structure, the import duty on gold and silver was raised sharply from 6 per cent to 15 per cent, while the duty on platinum was increased to 15.4 per cent.

The main aim of the decision is to reduce non-essential imports and conserve the country’s foreign exchange reserves. Lowering imports helps ease pressure on India’s Current Account Deficit (CAD), which is the gap between the value of goods and services a country imports and exports.

The decision was also influenced by volatility in global crude oil prices and supply-side disruptions affecting international trade and shipping. India imports large quantities of gold, so higher duties can reduce demand for imported gold.

For exam aspirants, remember that customs duty is a type of indirect tax on imports, that the Ministry of Finance manages such taxation and economic policies, and that the Current Account Deficit is an important external-sector indicator.