Budget 2025: Tax Reduction To Systemic Changes — What Experts Expect For Gold

The commodities space had seen quite a change in the previous Budget. Customs duty on the yellow metal was cut by 9%. The price of the commodity had fallen to Rs 67,800 shortly after the rate cut, according to the India Bullion Association.

Prices of the yellow metal saw an upward climb in January with rates crossing Rs 82,330 earlier last week. Prices have risen based on various geopolitical changes, supported by strong demand from the domestic markets. With the Budget being the major upcoming cue for gold price movement in the markets, here is what commodity experts anticipate.

No Dramatic Negative Changes

The previous move had a direct impact on both prices and imports. This Budget, a status quo is expected as the impact of the earlier decision is still settling into the system.

"The last move almost erased smuggling from the system. I'll be surprised if they change anything there as they took a very strong step six months ago. With all the changes in the system, the customs duty cut has helped the whole country move into the 'Viksit Bharat' vision of our respectable Prime Minister," said Sachin Jain, regional chief executive officer of World Gold Council.

"The government brought the Indian consumer at par with the global consumer. I don't expect dramatic negative changes around gold because such a huge change was made six months ago. We should see a full financial year with this level of consumption and more," he added.

Bid For Lower Transaction Tax

"For the Budget, we are not expecting much in the gold segment. The last Budget exceeded our expectations. We had only expected a 5% rate cut and it was cut by 9%. It was good for the markets," said Vandana Bharti, research head for commodities at SMC Group.

There is also a bid for a reduction in transaction taxes along with positive changes for other commodities.

"It is important that they at least reduce the the commodity transaction tax or CTT. It is eating up participation as it is not there anywhere else (in any other country). This time we are also expecting the ban on certain agro-commodities being revoked," she said.