NEW DELHI—India Tuesday increased the import tax on gold jewelry to 15% from 10%, the latest in a series of moves to curb imports of the metal to help narrow the country's current-account deficit.
The step is prompted by a pickup in gold jewelry imports after India raised the import tax on gold, including bars and coins, to 10% from 8% in August. At the time, the government had left unchanged the tax on jewelry imports, which was already at 10%.
The government said the latest step is aimed at also helping local jewelry manufacturers because the difference in taxes between imported raw gold and jewelry had vanished.
India imported gold jewelry valued at $5.04 billion in the last financial year, accounting for about 10% of the country's total imports of the metal.
India relies on imports for all the gold it consumes. The bulk of gold sold in the country is in the form of jewelry, and most of the ornaments are made by local manufacturers.
India imported gold jewelry valued at $5.04 billion in the last financial year ended in March, accounting for about 10% of the country's total gold imports.