According to a government notice dated June 30, India has increased the basic import duty on gold from 7.5 to 12.5%. This action has been made to lessen the flow of gold into the country that ranks second in the world for precious metal consumption, The overall tax on gold would be 15.75% after the current 5% increase in import duty, which is made up of a 12.50% base import duty, a 2.5% agro cess, and a 0.75% social welfare surcharge. According to analysts, this action will increase the price of gold domestically, increasing the cost to consumers. "The government has taken this action to reduce imports and keep the import-export basket balanced. According to the finance ministry, the current account deficit is being put under pressure by the spike in gold imports.
