In another effort to curb the rising gold imports and the ballooning current account deficit, the Government has raised the import duty on precious metals to 10%. The hike — from 8 % for gold and 6 % for silver — is expected to earn Rs 4,830 crore for the government coffers. So, this time around, buying gold, silver or platinum will be a bit more expensive .
This is the third time since January that the import duty on gold has been raised. Going by the rate of gold, a 2% hike translates into Rs 500 for 10 gm, while for silver, it is over Rs 1,500 a kg. Raising import duty is meant to contain the CAD (the difference between payments to be made and received in dollars) to 3.7% of GDP. But the industry fears that the higher duty will encourage smuggling.