Tax refund rate cut 31 per cent for silver jewellery exporters

NEW DELHI: Amid declining global silver prices, the government has slashed duty drawback rate by nearly 31 per cent to Rs 1,795.5 per kg on silver ornament.

The earlier duty drawback rate (the refund of duty on imported inputs for export item) was Rs 2,590.80 per kg.

The drawback rate for "articles of jewellery and parts thereof, made of silver" is "Rs 1,795.5 per kg of net silver content (.999 purity) in the jewellery", a Central Board of Excise and Customs ( CBEC) notification said.

The drawback rate has been decreased at a time when silver prices have dropped to around Rs 45,000 a kilo in the international market.

The earlier drawback rate was fixed when the silver prices were in the range of Rs 65,000 to Rs 70,000 a kg.

Ajay Sahai, Director-General of apex exporters body FIEO said that while the drawback rate has been reduced due to falling prices, it should be raised when silver goes up.