Quote on Gold : Indian government has raised the import tax on gold from 7.5% to 12.5% By Naveen Mathur, Anand Rathi Shares and Stock Brokers
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Quote on Gold after import duty hike By Naveen Mathur, Director Commodities and Currencies, Anand Rathi Shares and Stock Brokers
The Indian government has raised the import tax on gold from 7.5% to 12.5%. The step has been taken in an effort to curb imports, as the rupee slid to a record low. India had imported the most amount of gold in a decade last year, as demand revived after the pandemic. There has been a sudden surge in imports of gold. In May, a total of 107 tonnes of gold was imported as compared to 11 tonnes same period last year and in June also the imports have been significant. The surge in gold imports is putting pressure on the current account deficit.
India is a net importer due to oil and gold requirements. The same places a pressure on the rupee (hit a record low earlier this week, 6.5% decline YTD), in order to reduce inflows to the world’s second-largest consumer, India increased its import tax on gold in a surprise move today.
MCX Gold has gained more than 2.50% at the opening trade but owing to pressure in the international Gold which is trading below $1800/oz, prices may cool down on the MCX too.
MCX Gold August may decline to Rs. 51,400 / 10 gram.
GOLD IMPORT Market Update (Calculation for reference)
Base Duty changed from 7.5% to 12.5%.
Social welfare surcharge has been exempted.
Older Rate was was near 10.75%
Latest is now be revised to 15% (12.5% base duty + 2.5% agri cess).
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