Will Gold import duty hike encourage smuggling read to know what Trade associations say

India has made a raise in the import duties on gold and other precious metals on Friday in a surprise move .

Lower demand from India could weigh on global prices that are trading near their highest level in six years.

Jewellery trade associations have asked India’s government to reduce gold import duties, which have caused a surge in smuggling.

It has been asserted that Government’s decision to increase customs duty on gold to 12.5% from 10% is going to encourage a lot of smuggling, All India Gem and Jewellery Domestic Council’s Chairman Anantha Padmanaban said. “This is a shocking move. We were expecting a reduction in customs duty,” Padmanaban added. Meanwhile, World Gold Council said the hike “will dilute efforts to reduce cash transactions”.