Dubai gold trade hurt by new Indian import tariffs | Reuters

Dubai gold trade hurt by new Indian import tariffs | Reuters:

"* Dubai gold exports trade seen down 60 pct, dealers say

* Rising scrap supply in India weighing on imports

* Gold smuggling into India expected to increase

By Clara Denina

LONDON, Sept 23 (Reuters) - Indian measures to discourage gold imports is shutting the door on top exporter Dubai, where trade activity has fallen by as much as 60 percent over the past two months, dealers said.

With gold the most expensive non-essential item on India's import bill, the country's government, in moves to curb a bulging current account deficit, hiked the duty on gold bullion imports three times this year to a record 10 percent, while increasing the import duty on gold jewellery to 15 percent.

Pakistan also suspended a duty-free gold import arrangement in August after purchases soared in the first half and topped $514 million in July alone, citing smuggling into India. The ban was lifted in September, but trade has remained subdued."

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