𝗚𝗼𝗹𝗱 𝗦𝗺𝘂𝗴𝗴𝗹𝗶𝗻𝗴 𝗥𝗶𝘀𝗲𝘀 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮 𝗮𝘀 𝗜𝗺𝗽𝗼𝗿𝘁 𝗗𝘂𝘁𝘆 𝗖𝗹𝗶𝗺𝗯𝘀 𝘁𝗼 𝟭𝟱 𝗣𝗲𝗿𝗰𝗲𝗻𝘁
India raised its gold import duty from 6% to 15%. Illegal gold now sells at discounts of up to Rs 10 lakh per kilogram.
Industry sources say gold from the Middle East enters India through airports without declaration. Passengers from Gulf nations wear the jewelry and walk through green channels. Surendra Mehta of the India Bullion & Jewellers Association confirmed this route.
The landed cost for one kilogram of legal gold stands at Rs 1.65 crore. This includes a 15% import duty and 3% goods and services tax. The gold itself costs Rs 1.40 crore. Taxes add Rs 25 lakh.
Grey market sellers avoid these taxes. They offer gold at discounts of Rs 8 to 10 lakh per kilogram. They still earn profits of about Rs 16 lakh per kilogram.
Bangladesh and Nepal also serve as sources. Smuggling activity is high in Maharashtra, Tamil Nadu, Gujarat and West Bengal.
Last week, Mumbai airport customs seized gold worth Rs 4.19 crore from two passengers arriving from Dubai.
The World Gold Council reported similar trends in 2013. After a duty hike then, unofficial imports grew seven times in one year. They jumped from 10 tonnes in early 2013 to 70 tonnes in early 2014.
From 2013 to 2019, duties stayed at 10%. Unofficial inflows were 34 tonnes per quarter during this period.
Experts say it is too early to know the full amount of smuggling this year. The duty change took effect only weeks ago.
Source: The Times of India