India’s gold import duty soared 6%

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According to Maybank Kim Eng, gov’t increases import duty on gold, platinum to narrow current A/C deficit.

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Yesterday, the gov’t increased import duty on gold to 6% from 4% earlier. This was expected because high gold imports are widening the current account deficit and putting pressure on the INR vs the US$. In 2011, India imported 969 tons of gold and until Sep 2012 it had imported 604 tons of gold.

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