India Increases Gold Tax Third Time This Year to Cut Deficit

India, the world’s biggest gold user, raised the tax on imports for a third time this year to curtail demand and contain a record current-account deficit that’s weakened the rupee to an all-time low.

The tariffs on gold and platinum imports were increased to 10 percent from 8 percent, while the levy on silver was boosted to 10 percent from 6 percent, the Ministry of Finance said in a notification tabled in parliament today. Taxes on shipments of gold concentrates, ores and dore bars will rise to 8 percent from 6 percent, while the duty on silver dore bars will climb to 7 percent from 3 percent, the ministry said in a statement.