New Delhi: The government has hiked gold import duty to 15 percent from 10.75 percent to check the current account deficit (CAD) and rising import of the yellow metal.
The duty changes came into effect on June 30.
Earlier, the basic customs duty on gold was 7.5 percent, now 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.
There has been a sudden surge in imports of gold. In May, a total of 107 tonnes of gold was imported and in June also the imports have been significant. The surge in gold imports is putting pressure on the current account deficit, the finance ministry said.