India gold demand plunges 70% after duty rises to 15%
Business
India's gold demand just took a massive hit, down 70% in the two weeks after the government raised import duty from 6% to 15% on May 13.
The move made gold a lot pricier for buyers.
Gold consumption falls to 7.5 tons
Gold consumption crashed to just 7.5 tons (from last year's 25 tons) as higher prices pushed people away from buying.
Local, unorganized sellers, who make up most of the market, are struggling most, with some shoppers switching to lighter or lower-karat jewelry.
Some are even selling old gold for cash to cope with costs.
Retailers say panic buying quickly turned into slow sales, especially for smaller shops now facing tighter profit margins and an overall tax burden of nearly 18.5%.