New Delhi: In a bid to check the current account deficit (CAD) and rising import of the yellow metal, the government has hiked gold import duty to 15 percent from 10.75 percent The duty changes came into effect on June 30.
Earlier, the basic customs duty on gold was 7.5 percent, currently it will be 12.5 percent. Along with the agriculture infrastructure development cess (AIDC) of 2.5 percent, the effective gold customs duty will be 15 percent. Finance Minister Nirmala Sitharaman said India does not produce much gold.
Notably, the import of yellow metal put stress on the country's forex. "Gold is inelastic in its demand. hence, you would want to see whether you can at least try to discourage to that extent people importing. Or if you are importing and you still want to import, please pay up that much more so that country can have some revenue," the finance minster said.