Gold and silver duties jump to 15% as bullion prices surge 7%

A tax rise from 6 to 15% flips demand

In a late Tuesday move, India raised import duties on gold and silver to 15% from 6%, effective May 13, combining a 10% basic customs duty with a 5% Agriculture Infrastructure and Development Cess. The government says the aim is to curb overseas buying of precious metals and ease pressure on foreign exchange reserves, even as bullion prices reportedly jump about 7%.