FM may raise Gold import duty to 6% to rein in current account deficit

By Religare
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    FM may raise Gold import duty to 6% to rein in deficit
    The finance ministry is leaving no corner untouched for reining in its current account deficit. Media reports said that it is now considering raising the gold import duty by 2 per cent to 6 per cent, as rising demand for the yellow metal continues to hit import bill of India.
     

    However, the move, which may be announced as a part of the Union Budget, may not yield desired results, said some experts. They said that it will increase the risk of smuggling of gold, while buyers may not actually reduce their demand, despite 2 per cent rise in the import duty, for the precious metal which has delivered attractive returns in the past.

    Earlier this month, finance minister P Chidambaram had said that government will have to make it costlier to reduce its demand.

    In January last year, basic Customs duty was raised from Rs 300 per 10g to an ad valorem rate of two per cent on standard gold bars and five per cent on non-standard ones. And then it was doubled to 4 per cent and 10 per cent respectively.

    Read more about: gold
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more