India to review gold tax but import duty to stay
However authorities said they would not budge on an import duty hike from 2% to 4%.
India is the biggest importer of gold in the world.
Gold demand by country
- India - 32%
- Greater China - 20%
- Europe and Russia - 13%
- Middle East and Turkey - 12%
- North America - 8%
- Others 15%
Finance Minister Pranab Mukherjee said on Tuesday that the government would reconsider its new 0.3% excise tax on unbranded gold jewellery because it did not want to harass the industry.
However he added that the import duty would stay because Indians were spending "precious foreign exchange" to buy gold.
The high gold imports have weakened the rupee against the major global currencies.