India imposes new taxes on gold to reduce its imports

Japanese Stock market pushed Comex down

The Indian government imposed new taxes on gold, in a bid to reduce imports that feed a huge trade deficit. The new taxes contradict the ingrained culture which has made India the largest buyer of gold in the world.

because of the high demand for coins, bars and gold jewelery in a big increase in the trade deficit for India,the issue which cause the weaken of the Indian currency.

last year Indians imported 864 tons of gold, representing about a fifth of the global sales.

The cost of the last year was $ 2.5 trillion rupiah (forty-five billion dollars), ranked the second in the standings after the bill incurred by India against imports of oil.

India last month raised taxes on gold imports by 6%, but few believe that it would refrain demand for gold. Because gold jewelery need in marriages in India, and is seen as a status symbol and a safe haven for wealth. there is an expectation by the rise of gold price in India through new taxes.