Government Hikes Gold Import Duty To 8% from 6%

The government has hiked the gold import duty to 8% from current 6% in order to curb extremely high demand for the metal. 

This is the second hike in gold import duty since January. 

Gold import duty has been hiked to 8% from 2% in past two years.

The government is making increasing efforts to reduce the quantum of gold imports which are responsible for the country's growing Current Account Deficit. 

In April, 2013, gold and silver imports surged by 138% to $7.5 billion, as against $3.1 billion a year ago.