Government Reviews Gold Duty Hike Amid Industry Push
What Happened
The government is considering reducing import duties on gold and silver, currently at 15%, amid concerns that higher taxes may be encouraging smuggling and unofficial imports. Industry bodies, bullion traders and jewellers are urging the government to cut duties to 6%, though no decision has been taken yet.
Key Takeaways
A duty reduction could lower gold prices, boost legal imports and reduce smuggling, but policymakers must also balance concerns around current account deficit and foreign exchange reserves.