Austerity drive: Duty hike pushes up bullion prices by 7%

The government late Tuesday increased import duties on gold and silver to 15% from 6% with effect from May 13. The step is aimed at curbing overseas purchases of precious metals and reducing pressure on the country's foreign exchange reserves. The revised structure includes a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), lifting the effective import tax to 15%.