Precious Blog: India raises gold and silver VAT

研报英文原文证据摘录

Precious Blog: India raises gold and silver VAT

Deutsche Bank

Research

Commodities Date

Precious Blog 13 May 2026

India raises gold and silver VAT

Michael Hsueh

• India has raised its VAT on gold and silver imports from 6% to 15% Research Analyst

effective today. Although the lowering of VAT from 15% to 6% in 2024 +65-6423-7510

was a strong boost to India’s gold imports then, we think today’s policy

change is unlikely to have a disruptively negative impact on gold demand.

• First, the 2024 example (policy change in July) was exaggerated by the

seasonal rise in gold imports in August. In 2024, capital gains treatment

for gold and gold ETFs was also improved, which may have contributed.

In today’s case, the April-May-June seasonal profile is mostly neutral,

and there is no change to capital gains treatment for gold and gold ETFs.

• Second, India’s gold imports were already low in March 2026. India was

a weak contributor to overall Asia gold imports, which were stable

because of strong China demand. Unless India’s gold imports were

unusually strong in April (which we see as unlikely), we think the negative

impact for the gold market is likely to be modest.

India raises VAT on precious metals, reversing 2024 move

India announced an increase in VAT from 6% to 15%, structured as a 10% basic

customs duty (BCD) and 5% Agriculture Infrastructure Development Cess (AIDC)

on gold and silver imports. This becomes effective on 13 May 2026, and reverses

a July 2024 reduction from the 15% level (announced 23 Jul 2024, effective 24

Jul 2024).

In 2024, the VAT reduction as part of the 2024-25 Union Budget was intended to

support the industry’s reform and foster organized growth, boosting the

competitiveness of the domestic gold industry, while raising gold jewellery