Cut in gold import duty will curb smuggling, boost jewellery exports: Goyal

The announcement in the Budget to cut import duty on gold will help boost domestic manufacturing and promote jewellery exports, Commerce and Industry Minister Piyush Goyal said on Tuesday.

He also said that the decision for the removal of angel tax will further strengthen the startup ecosystem in the country.

"The gold import duty cut to 6 per cent will promote the manufacturing of gold and silver jewellery. It will also contain smuggling," Goyal told PTI.

He added that the gold prices are high and the marriage season is coming and this move would help the people.

Presenting the Union Budget 2024-25 on Tuesday, Finance Minister Nirmala Sitharaman said that to enhance domestic value addition in gold and precious metal jewellery in the country, the government has proposed to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent.

Giving a big relief to startups, the government on Tuesday announced the removal of angel tax for all classes of investors to further promote the growth of budding entrepreneurs in the country.

Angel tax refers to the income tax that the government imposes on funding raised by unlisted companies, or startups, if their valuation exceeds the company's fair market value.

Goyal also said that the Budget has touched all the sections of the society.

He said that the focus on capital expenditure has a multiplier impact on the economy as it will help cut logistics costs, boost manufacturing, and exports also.

When asked about the announcement in foreign direct investment (FDI), Goyal said that the ministry has put up several suggestions in this area in front of the committee of secretaries.

The idea is further simplification in terms of process and procedures and speed of approvals.

In some sectors, the ministry may consider permitting FDI through an automatic approval route.

"It is a mix of different things...we will send it to finance ministry and then it will go to cabinet," he added.

Further, in e-commerce hubs, the ministry said the Department of Commerce may start with 10-15 hubs.