Gold duty hike to check discretionary imports, prioritise forex use: Sources
NEW DELHI, May 13 (PTI): The government’s decision to hike import duty on gold to 15 per cent is aimed at checking discretionary imports and prioritise forex towards essential imports like crude oil, fertilisers, industrial raw materials and capital goods that directly support economic activity and food security, sources said on Wednesday.
Effective May 13, import duty on gold and silver has been increased from 6 per cent to 15 per cent and that on platinum has been raised from 6.4 per cent to 15.4 per cent. Consequential changes have also been made to other items such as gold/silver dore, coins, findings, etc.
Sources said through this measure, the government seeks to “prudently manage emerging risks and reduce vulnerability to potential external shocks before pressures on current account intensify further” “amid extraordinary” external conditions.
