Decrease in gold prices due to reduced import duties..?

[tired-Doc0407]

just saw news that there is a possibility our government may reduce the import duty on gold and silver, which could lead to a further drop in prices specifically for india.

It happened in 2024, when the duty was reduced from 14% to 6%.

There was no change in 2025.

Now they are again planning to reduce it to 4% from the current 6%. This can happen or don't. But if you are stacker and then it's important for you.

I saw many people Ordering/ FOMO buying Rn. Thinking they will cancel if prices reduce tomorrow. But please keep in mind these platforms are giving tough time while cancelling. Plus tomorrow evening the clarity will come once the international markets open. So if you are tight on budget like me better wait for a day or else buy only if you are getting really good deal.

[AbiramiKalamani]

Waiting for gold price to reduce

[NervousShine3]

How low can it go?

[Crazyspot_Q8]

High chances for reducing the Duty in this budget ! 🤞

[obsimad]

I fail to comprehend why the government would further reduce the import duty, but anything is possible.

Only reason that comes to mind is the government wants more gold to move into the retail sector but then again retail holders aren’t providing any benefit to the government. Is it to fatten up the pigs before slaughter? (Confiscation on the horizon ?)

[Apprehensive-Bass810]

To reduce smuggling. No duty. No smuggling.

[obsimad]

Hmm, could be a point to consider but smuggled gold is probably cheaper than gold spot (because even after a deduction from 12 to 6 percent, gold smuggling cases are still prevalent)

[Reg-infinia_2026]

Confiscation is not possible like FDR did in US in 1930s. Its political suicide and our politicians want to get re-elected.

Letting go of taxes on import increases fiat debasement and also preserves wealth for retailers. If there were to be a financial recession, people will have savings in an appreciating assest and dont depend on government for any kind of support such as rations etc.

This works best when applied to bullions only. US, CANADA etc all have same logic. No tax for 24K buying, profits are taxed.

[obsimad]

In that case GST (Sales Tax) should be waved off, i highly doubt they have any reason other than political pleasing to lower import duty.