Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies. Gold jewellery imports from the 10-member Association of South East Asian Nations (ASEAN) under the free-trade agreement, which have been under the scanner for some time, will face a 12.5% countervailing duty in lieu of 12.5% excise duty imposed in the budget. The duty will make imports more expensive and protect the local industry.

"Excise duty without credit is pegged at 1%, but CVD would be equivalent of 12.5%, the rate proposed with credit”