The Centre has nearly doubled duty drawback rates for select categories of gold and silver jewellery exports to improve exporters’ competitiveness amid rising input costs and global uncertainties. The revision comes amid a sharp rise in gold and silver prices over the past two years. Exporters had argued that the existing drawback rates had become inadequate, resulting in lower reimbursement of embedded duties and putting pressure on their working capital.

The duty drawback for gold jewellery and parts has been increased to Rs.1,851.99 per gram from Rs.773.17 per gram, while the rate for silver jewellery and articles made of silver has been raised to Rs.29,501.09 per kg from Rs.14,990.66 per kg, according to a notification issued by the Department of Revenue on Friday.

The notification does not change the scope of the duty drawback scheme or its eligibility conditions.The revision comes amid a sharp rise in gold and silver prices over the past two years. Exporters had argued that the existing drawback rates had become inadequate, resulting in lower reimbursement of embedded duties and putting pressure on their working capital.

Since duty drawback is intended to refund duties paid on inputs used in export production, the previous rates no longer reflected the actual incidence of duties borne by exporters.