India Said to Consider Lowering Gold Import Tax to 6% From 10%

India, the world’s second-biggest consumer of gold, is said to be considering cutting the import tax on the precious metal in order to curb its smuggling, according to people familiar with the matter.

The government is planning to reduce the duty to 6 percent from 10 percent now, said the people, who asked not to be named as they are not authorized to speak to the media.

Smuggled gold imports were estimated to be in the range of 140 tons to 160 tons in 2016, higher than the 120 tons in the previous year, according to the World Gold Council. It estimated in November that consumption would be 650 tons to 750 tons this year, the lowest in seven years.

India Said to Consider Lowering Gold Import Tax to 6% From 10%