Will India hike import duty on Gold to 8% in the FY 2013 14 budget?

MUMBAI (Commodity Online): If the words of Chairman of the All India Gem & Jewellery Trade Federation are anything to go by, India may hike import duty on gold from the current 6% to 8% to arrest the widening Current Account Deficit.

?There?s a feeling that the government is looking at increasing the duty again, maybe to 8 percent,? said Bachhraj Bamalwa, chairman of the All India Gem & Jewellery Trade Federation to Bloomberg.

?The industry fears they may re-impose the excise tax, which was scrapped last year.? he added.

?We?re keeping our fingers crossed as any change will be bad for the industry,? said Bamalwa. ?We?ll be happy if the status quo is maintained.?

India govt is about to present the annual budget on Feb. 28.

Further hike in levy may cut imports by as much as 20% from 860 tons in 2012.

?By increasing the duty you are going to encourage smuggling,? Monal Thakkar, president of Amrapali Group, an importer, said by phone from Ahmedabad to Bloomberg News.

?India will either remain number one or number two importer.? he added.

Source: http://www.commodityonline.com/news/will-india-hike-import-duty-on-gold-to-8-in-the-fy-2013-14-budget-52988-3-52989.html

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