Customs duty on gold, silver, platinum tops Rs 10,460 crore since duty hike
New Delhi, Aug 10
The government has collected Rs 10,463 crore in customs duty from imports of gold, silver and platinum between May 13 and August 2 following the increase in import duties on the precious metals, Parliament was informed on Monday.
In a written reply to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said customs duty collections during the period stood at Rs 10,040 crore on gold, Rs 328 crore on silver and Rs 95 crore on platinum.
The combined customs duty collection from the three precious metals thus amounted to Rs 10,463 crore during the period.
With effect from May 13, the government had increased the import duty on gold and silver to 15 per cent from 6 per cent, while the duty on platinum was raised to 15.4 per cent from 6.4 per cent.
Moreover, consequential changes were also made to duties on related items, including gold and silver dore, coins and findings.
Chaudhary said the government had taken the decision to curb discretionary imports and prioritise foreign exchange for essential imports such as crude oil, fertilisers, industrial raw materials and capital goods.
The duty hike came against the backdrop of rising global uncertainties, including the conflict in West Asia and the effective blockade of the Strait of Hormuz, which had pushed up prices of crude oil as well as food and fertiliser imports.
The minister also informed the House that enforcement agencies seized 161 kg of smuggled gold and arrested 116 persons between May 13 and June 30.
India is the world's second-largest consumer of gold after China with imports largely driven by demand from the jewellery sector.
Gold imports account for a significant outflow of foreign exchange and are closely monitored by policymakers from a balance-of-payments perspective.
— IANS
Reader Comments
On one hand we encourage families to save in gold for weddings, and on the other we hike taxes on it. Middle class families who buy small quantities for their daughters' weddings will suffer the most. Especially in states like Tamil Nadu where gold is deeply tied to culture and tradition. The government should have exempted small purchases under say 20 grams from the higher duty. 😔
Makes sense to curb imports when we are facing global uncertainty. The smugglers being caught (116 arrests) shows the government is also serious about the black economy around gold. But I wonder, will this actually stop people from buying gold? Indians will always buy gold, it's in our blood. The demand might shift to digital gold or ETFs though!
This is a sensible macroeconomic decision. With the rupee under pressure and oil prices rising due to the Strait of Hormuz blockade threat, prioritising essential imports like fertilisers and crude over gold makes complete sense. However, I hope the government is not just collecting more taxes but also ensuring the jewellery industry doesn't suffer massive job losses. Varanasi, Kolkata, Coimbatore - many artisans depend on this sector.
I've lived in Mumbai for 5 years now, and I completely understand why gold matters so much here. It's not just an ornament - it's a family's security net. That said, the government's logic about foreign exchange reserve protection is solid. Maybe a middle path could exist - higher duties on investment gold bars and lower on jewellery for personal use? Just a thought from a foreigner who respects Indian traditions! 💛
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