NEW DELHI—The Indian government Tuesday raised the import tax on gold and silver in a bid to stem the tide of dollars flowing out of the country, but the move is unlikely to dent strong demand for the precious metals during the festival season.

The finance ministry lifted the import tax on gold to 10% from 8%. The tax on silver was also raised to 10%, from 6%. India is the world's biggest gold consumer and a leading market for silver.

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