India’s Minister for State Finance JD Seelan has confirmed in writing there are no plans this month to reduce the 10% gold import tax.

The tax was introduced last year to reduce an expanding current account deficit which in turn was negatively affecting the value of the Rupee. Since the introduction of the gold tax India has dropped below China as the world’s number one gold consumer.

Gold smuggling has dramatically increased since the introduction of the restrictions, with authorities estimating 1-3 tonnes of gold are being smuggled into India each month.