Government hikes gold and silver import duty to 15 percent

tNEW DELHI, May 13, 2026: The Union Government on Wednesday announced a sharp increase in import duties on gold and silver, raising the total tax from 6 percent to 15 percent.

This decision follows recent appeals by Prime Minister Narendra Modi for citizens to refrain from purchasing gold for at least a year to help stabilize the economy during the ongoing Iran war.

The new tax structure includes a 10 percent basic customs duty combined with a 5 percent Agriculture Infrastructure and Development Cess, reflecting a strategic move to safeguard the country’s foreign exchange reserves.

The primary objective of this significant duty hike is to curb the high volume of precious metal imports, which has contributed to a widening trade deficit. Authorities are taking these measures to support the Indian rupee after it touched a record low of 95.75 against the US dollar.

By reducing the demand for imported gold and silver, the government aims to alleviate pressure on the national currency and maintain fiscal stability amid global economic volatility and rising energy costs.