Govt raises import duty on gold, platinum to 6%

NEW DELHI: In order to take urgent steps to curb gold imports feeding the current account deficit (CAD), the government on Monday raised the import duty on gold and platinum from 4 to 6 per cent with immediate effect.

Along with this, the government also announced its decision to link the Gold ETFs (Exchange Traded Funds) with Gold Deposit schemes as a measure to increase the supply of physical gold in the market without resorting to imports.

Arvind Mayaram, Department of Economic Affairs Secretary said, “the government has decided to increase import duty on gold and platinum from 4 per cent to 6 per cent with immediate effect”.

The government, Dr. Mayaram said, would effect consequential changes in the additional customs duty and excise duty on gold ‘dore’ bars, gold ores and refined gold. The duties will be reviewed after some time if there is a moderation in the quantity of gold that is imported, he added.

After the government decision to hike the import duty on gold and platinum, there was immediate increase in the price of gold by Rs. 315 at Rs. 31,250 per 10 grams.