by Pankaj Yadav
NEW DELHI, May 13 (Xinhua) -- The Indian government has imposed a 10-percent basic customs duty and a 5-percent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, effective Wednesday.
After the hike, the country's effective tax rate on both metals, including the Integrated Goods and Services Tax (IGST), accumulated to about 18.4 percent.
It was seen as a bid to discourage the yellow metal's imports into the country in a bid to save foreign exchange (forex) reserves, and also strengthen the country's currency amid the ongoing Middle East crisis.
An official notification to this effect, issued by the federal finance ministry on Tuesday evening, stated that this was being done in "public interest."
Head of Research at Axis Securities Limited, Rajesh Palviya Jain, said that the government's move would try to maintain the forex reserves, but also adversely impact the jewelry industry. ■
