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The government has hiked gold import duty to 15 per cent from 10.75 per cent to check current account deficit (CAD) and rising import of the yellow metal.
The duty changes came into effect from June 30.
Earlier, the basic customs duty on gold was 7.5 per cent, now it will be 12.5 per cent. Along with agriculture infrastructure development cess (AIDC) of 2.5 per cent, the effective gold customs duty will be 15 per cent.
There has been a sudden surge in imports of gold. In the month of 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.
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