New Delhi : India hiked the import duty on gold yet again to a record 10% and also raised excise duty on the metal, after Indians bought more in July despite attempts to strangle supply and curb demand as the government tries to rein in dollar spending.
Gold is Indias biggest luxury import and  a series of tax hikes and constraints on supplies appeared to stem demand and imports fell in June to $2.45 billion. Indians imported 335.5 tonnes in April to June 2013. A rupee at record lows, which makes domestic purchases costlier despite falling global prices, has still failed to falter demand.

Import duty on refined gold bars will now be 10 per cent compared to 8 per cent previously, the third hike in eight months, while factory gate duty on gold bars will be 9 per cent against 7 per cent earlier.

Indias supply constraints have already prompted a surge in imports for its neighbours, and Pakistan has banned foreign purchases for a month while Sri Lanka had already hiked its own import duty to 10 percent to try to control trade.

The government said the extra duties could boost its revenues by $790 million for the rest of this fiscal year ending March 31, 2014.