Gold imports duty: Precious little logic

The Government’s decision to hike the duty on gold imports from 4 to 6 per cent is the latest of its desperate moves to ‘moderate’ domestic demand for the yellow metal. By making it costlier or directing non-banking financial companies (NBFC) not to extend loans beyond 60 per cent the value of jewellery offered as collateral, the attempt is clearly to reduce the attractiveness for the public to buy or even use gold as a source to secure credit.

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