India raises import duty on gold jewellery to 15%
Import duty on gold jewellery was pushed up to 15 percent by the finance ministry, setting it higher than the raw gold duty. It is a move aimed to protect domestic jewellery industry.
September 18, 2013 / 10:07 IST
India pushed import duty on gold jewellery from 10 to 15 percent, the finance ministry said on Tuesday, setting it higher than raw gold duty in a move aimed more at protecting the domestic jewellery industry than stemming bullion imports.
India imported gold jewellery worth USD 137.57 million in the four months from April to July this year -- a fraction of overall bullion imports, which were USD 2.9 billion in July alone.Also read: RBI may not scale back liquidity measures in Sept: BarclaysThe government has curbed gold imports through measures including three duty hikes this year to a record 10 percent and the central bank has put tight restrictions on importers that have sharply curtailed supplies.India, the world's biggest buyer of bullion, had imported a record 162 tonnes in May and creating a headache for the government which is trying to curb a wide current account deficit and support a weak rupee.Gold is the biggest non-essential item in India's import bill but jewellery is a tiny fraction of the purchases.The hike in import duty on jewellery had been a demand from the industry to ensure the viability of the domestic jewellery manufacturing, and avoid imports of cheaper jewellery from Thailand, Malaysia or elsewhere. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
