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India Cuts Gold Import Tax to Curb Price Surge, Illegal Inflows

  • Import duty on gold and silver reduced to 7.5% from 12.5%
  • India imports almost all of the gold that it consumes
Gold necklaces inside a store in Noida, India.

Gold necklaces inside a store in Noida, India.

Photographer: Prashanth Vishwanathan/Bloomberg

India cut an import tax on gold as prices rallied to record highs last year and to curb inflows of illegal supplies in the world’s second-largest consumer.

Prices have run up sharply since the tax was last raised in 2019, Finance Minister Nirmala Sitharaman said in her annual budget speech in New Delhi on Monday, while cutting the basic customs duty on bullion imports to 7.5% and imposing an additional tax of 2.5% to support agriculture.