How will the hike in import duty of gold affect customers in India

Indian gold imports in May were recorded at 107 tonnes, a rise of 790 per cent year-on-year, and impacting the current account deficit negatively

The government announced a hike in the custom duty on gold from 7.5 per cent to 12.5 per cent on July 1 this year. Gold also attracts a 2.5 per cent agriculture infrastructure development cess (AIDC), taking the total import duty to 15 per cent. The steps were taken, according to the government, to control gold imports and the widening current account deficit.

Gold prices in the country shot up once the announcement was made. According to data available on the MCX website, gold rates crossed Rs 52,000-mark on July 1 for the first time since April 29, a period