Budget 2024: Gold Shines With Import Duty Cuts, Middle Class Rejoices With Tax Relief

Finance Minister Nirmala Sitharaman, in her Union Budget 2024 speech on Tuesday, announced significant cuts in import duties on gold and silver. This move is aimed at enhancing domestic value addition in gold and precious metal jewelry.

Key Announcements

Gold and Silver Import Duty Cut

The import duties on gold and silver have been reduced from 15% to 6%. “To enhance domestic value addition in gold and precious metal jewelry, I propose to reduce customs duties of gold and silver to 6%,” Sitharaman said in her Lok Sabha speech.

Impact on the Stock Market

Following the announcement, shares of gold and jewelry retailers surged on the stock market:

• Senco Gold: Increased by 6.16% to trade at ₹1,000.80 per share.
• Rajesh Exports: Rose by 5.49% to ₹313.90 per share.
• PC Jewelers: Jumped 5% to ₹74.16 per share.
• Titan Company: Climbed 3.66% to ₹3,371.65 per share.
• Tribhuvana’s Bhimji Zaveri: Rose 2.79% to ₹140.20 per share.
• Kalyan Jewelers India: Gained 1.54% to ₹537.05 per share.

Other Budget 2024 Announcements

Steel and Copper

Sitharaman also announced changes to customs duties on key raw materials:

• Removal of basic customs duty on ferro nickel and blister copper.
• Continued nil BCD on ferrous scrap and nickel cathode.
• Concessional BCD of 2.5% on copper scrap.

Relief for the Middle Class

The biggest relief in Budget 2024 came for the middle class with the following changes:

• Standard Deduction: Increased by 50% to ₹75,000.
• Tax Slabs: Adjusted under the new income tax regime, allowing salaried employees to save up to ₹17,500 annually.
• Family Pension: Deduction for pensioners increased from ₹15,000 to ₹25,000.

Conclusion

The 2024 Budget brought significant changes to import duties and provided relief to the middle class. These measures are expected to boost the domestic market and provide financial relief to a broad segment of the population.

For more updates on Budget 2024 and its impact, stay tuned to our website.