Skip to main content

India, the world’s biggest consumer of bullion, increased import duties on gold and silver, potentially cooling demand from jewellery buyers and investors, according to GulfNews.com.

The government began taxing gold bars and coins at an additional 2 per cent from this week, while silver attracts a 6 per cent levy, the report said, quoting Indiaโ€™s finance ministryโ€™s website. Overseas purchases of gold were taxed at Rs300 (USD$5.71) per 10 grams and of silver at Rs1,500 a kilogram before yesterday.

Gold imports were already poised to drop 48 per cent in the first quarter as a decline in the rupee boosted prices and high borrowing costs cooled demand, Prithviraj Kothari, president of the Bombay Bullion Association, said on January 3. The higher taxes may help Prime Minister Manmohan Singh cut the fiscal deficit as slowing growth threatens to erode revenue.

“The government increased the duty probably to collect more revenue,” said Kothari by phone. “Prices will rise in the domestic market.”

More at GulfNews.com

Exporter Today Editorial Team

A member of the Pure 360 team made this post happen.

Dishing

Dishing up export possibilities

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012
minefield

Whatโ€™s mine is not yours

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012
25-countries

25 countries… and counting

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012