NEW DELHI: To control current account deficit (CAD) and increasing imports of the yellow metal, the government has hiked gold import duty from 10.75 percent to 15 percent. The duty changes came into effect from June 30.
The basic custom duty on gold was 7.5 per cent previously, but now it will be 12.5 per cent.
With the Agricultural Infrastructure Development Cess (AIDC) at 2.5 per cent, the effective gold customs duty will be 15 per cent.
Gold imports rose sharply. A total of 107 tonnes of gold was imported in May and in June too there have been a noted increase.
The Finance Ministry has said that the surge in gold imports is putting pressure on the current account deficit.
Source- PTI