NEW DELHI(BullionStreet): Prior to further tax hike on gold imports, Indian government is considering to review FTA with Thailand, the remaining loophole in gold imports.

According to reports Finance ministry is in touch with Thai authorities to make amendments to exclude gold from the list of goods those items under FTA.

At present, gold jewellery would attract only one per cent of import duty from Thailand, compared to 10 per cent from other origins.

Government has taken a note on the high increase in imports from Thailand last year which hit Indian jewellery manufacturing industry badly.

Several Indian jewellery associations had appealed to the government either treat Thailand at par with other origins which would attract 10 per cent uniform import duty or ban jewellery imports from Thailand.

They accused that some traders are converting gold into ornaments in Thailand and then import them to India from that country to evade the four per cent duty on normal gold imports.

They added that Thailand is neither a major producer nor a manufacturer of gold jewellery and most of the gold ornaments originated largely from China through virtually negligible value addition.

Unconfirmed reports said over 50 per cent of the total gold jewellery imports to India with an estimated value of Rs 12,000 crore came through Thailand.

Total gold jewellery import into India from the three major origins Thailand, Italy and Dubai was estimated at $4 billion in the first nine months of the current financial year against $400 million in the corresponding period last year.