It has also resulted in reducing the disparity between international and domestic prices of gold from 57 per cent during 1986 to 1991 to 8.5 per cent in 2001. The import duty on gold, which was Rs.220 per ten grams upto January 1999, was increased to Rs.400 per ten grams, and with effect from April 2001 has been reduced to Rs.250 per ten grams.
The estimates of duty realised from gold imports indicate an annual amount varying from about Rs. 1,000 to Rs. 2,000 crore per annum since 1997. Even though the country consumes more than 800 tonnes of the metal every year, the system of assaying and hallmarking has not gained the desired importance.