Indian Commerce ministry seeks import duty cut on Gold

INDIA July 28 2017 3:30 PM
 
MUMBAI (Scrap Register): The Commerce and Industry ministry has urged the Finance ministry to reduce the import duty on Gold to 2% from 10%, to encourage the growth of Indian jewellery in the international market.

A reduction in import duty would make Gold cheaper in the local market and could boost demand, supporting global prices now trading near their highest in six weeks, a commerce ministry official said.

A lower import duty would also help in curbing Gold smuggling, which the industry says is likely to rise after the hike in sales tax on Gold jewellery from July 1, the official said.

India raised import duties on Gold to 10 per cent in a series of hikes to August 2013, looking to curb demand to narrow a gaping current account deficit.

India's trade deficit narrowed more-than-expected to $12.96 billion in June as Gold imports nearly halved from a month earlier.