- Jun 8, 2022
It's an attempt to stop falling of Indian rupee. More you import and use your currency to pay, more there will be abundance of your currency in international market, leading to less demand and overall devaluation. It's an attempt to reduce the import of gold which is around 40 billion dollar a year.BJPigs, taking 2 steps forward and 1 step back .
The Central government hiked import duty on gold to 15% from 10.75% currently to ease pressure on the current account deficit (CAD) due to surging gold imports. The Centre also imposed a special additional excise duty of ₹6 per litre on exports of petrol and ₹13 per litre on exports of diesel.english.sakshi.com
Before this announcement, Indian rupee had fallen to 1 dollar = 79 .24 rupee, but after gold taxes hike, it increased to 78.94 rupee