India, the world’s biggest consumer of gold after China, increased the import tax on the precious metal for the first time since 2013, spurring domestic prices to a record. Shares of jewelers slumped.
The import tax on gold and other precious metals will be raised to 12.5% from 10%, Finance minister Nirmala Sitharaman said while presenting the federal budget for the year through March 31, 2020. India, which imports almost all of its gold, raised the tax thrice in 2013 to control a record current-account deficit.
