The government hiked the import duty on Gold and Platinum from 6 to 8 per cent on 5 June 2013.The hike is aimed at curbing import of gold, which is mainly responsible for the rise in Current Account Deficit (CAD) impacting on the country's foreign exchange reserves as well as the rupee value.
This is the second hike in the duty in six months as gold imports touched an alarming 162 tonnes in May 2013. The imports touched a staggering figure of 15 billion US dollars in the last two months.
The CAD, which is a difference between inflow and outflow of foreign currency, touched a historic high of 6.7 per cent of GDP in the quarter ending December 2012.
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