India imposes gold sales tax on top of record import duty
By GCRU Gold News on Monday, February 29 2016, 22:21 - Permalink
India has reintroduced a local sales tax on gold jewellery after a gap of four years, on top of record import duty, in a move officials hope will dampen demand for the precious metal in the world's second biggest consumer.
A report from his ministry on Friday said gold was under-taxed in the country, where the richest 20 percent account for roughly 80 percent of gold purchases.
Jewellers said the new duty will cut demand, which could eventually put a brake on the safe haven rally in global bullion prices.