Prices for 24 karat gold have increased by ₹1,450 when import duties were raised

On Sunday, gold prices were consistent across the nation. However, the increase in import duties at the beginning of this month has caused gold prices to increase.

On Sunday, gold prices were consistent across the nation. However, the increase in import duties at the beginning of this month has caused gold prices to increase. In the past three days, the cost of 24 carat in 10 grammes has grown by at least ₹1,450. whereas the cost of 22 karat gold increased by ₹1,350.

Currently, 10 grammes of 22-carat gold cost ₹48,000 and 10 grammes of 24-carat gold cost ₹52,340.

GST, tax withheld at source, and other levies are not included in these rates.

In major cities, Ahmedabad and Surat have the highest prices for 10 grammes of 24 karat gold at 52,500. While the same carat of gold is being sold for 52,340 in places like Mumbai, Delhi, Kolkata, Hyderabad, Kerala, Vijaywada, Bhubaneswar, and Visakhapatnam.

In towns and cities like Pune, Vadodara, Patna, and Nashik, 24 carat gold costs ₹52,390. Gold costs ₹52,420 in cities like Mysore, Mangalore, and Bangalore. Gold was priced at ₹52,490 in Chandigarh, Lucknow, and Jaipur. The yellow metal, meanwhile, was offered in areas like Chennai and Coimbatore for ₹52,280.

According to Good Returns data, the price of 24 karat gold was ₹50,890 on June 30 and the price of 22 karat gold in 10 grammes was ₹46,650.

However, on July 1, the Finance Ministry raised the import tax on gold from 7.5 percent to 12.5 percent, resulting in a 5 percent increase. Notably, it is predicted that the overall taxes on gold will probably be close to 18.45%.

Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking, explains that the government has raised the import duty on gold by 5 percent in a surprise move, making the import duty on gold as 12.50 percent. However, the effective duty on gold will be 15 percent, including the 2.5 percent. This is in an effort to stem the sharp decline in the rupee and curb the widening trade deficit, which has soared to record highs of ₹23.33 bl The overall net tariff change is 4.25 percent. Gold is subject to an additional 3 percent GST, bringing its overall tax rate to 18.45 percent.

The current account deficit is under strain due to the considerable increase in imports, which necessitated the increase in the import duty on gold.

107 tonnes of gold were imported in May, up from 11 tonnes during the same month last year. Imports were also significant in June.

According to the report, gold prices increased on July 1st by ₹1,310 in 24 carat and 1,200 in 22 carat. On July 2nd, the price of gold increased by ₹140 for 24 carat gold and by ₹150 for 22 carat gold.

Given that gold prices are stable today. In the first three days of July, the price of 24 karat gold has risen by ₹1,450, while the price of 22 karat gold has risen by ₹1,350.

Following the increase in import duties, gold prices are anticipated to soar even further.