The Govt has hiked the basic import duty on gold to 12.5% from 7.5% mainly with the aim of curbing gold imports into the country, prompted mainly by the falling rupee and a ballooning trade deficit, which in May hit a record high of $24.3 billion. The Govt is now scrutinizing all ways and means to cut down imports.
We are actually back to 12.5% customs duty after the FM in the Budget had brought it down to 7.5% in FY22. Now with this 5% increase, the total levy on gold, including cess, social welfare surcharge and GST stands at 15.75%.
Following this news, Titan figured amongst the losers – opening 2% lower at Rs.1904 and falling down further to an intraday low at Rs.1827, decline of 6%.