India Considering Gold Import Tax Reduction

The Wall Street Journal reported yesterday that before the end of the month, India will likely reduce its gold import tax to between 6 and 8 percent. Currently, the tax sits at 10 percent.

As quoted in the market news:

India’s government had gradually raised the import tax on gold to 10% from 2% since early 2012 to bring down the country’s current-account deficit. It tightened restrictions further last year by asking importers to re-export at least 20% of the gold they bring into the country.

The government is now considering reducing the import tax as the current-account deficit is estimated to have fallen by almost half to around $45 billion this financial year ending March 31 from $88 billion last year, the official told The Wall Street Journal.

Click here to read the full report from The Wall Street Journal.