Govt collects Rs 10,463 cr from gold, silver duty hike

The Government has collected Rs 10,463 crore as customs duty on gold, silver and platinum between May 13 and August 2, Parliament was informed on Monday.

The import duty on gold and silver had been hiked to 15 per cent, from 6 per cent, and that on platinum to 15.4 per cent from 6.4 per cent, with effect from May 13. Consequential changes were also made to other items, including gold and silver dore, coins, and findings. 

In a written reply to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the Government has collected Rs 10,040 crore as customs duty on gold between May 13 and August 2.

During the period, Rs 328 crore and Rs 95 crore were collected as customs duty on silver and platinum, respectively. Cumulatively, the total customs duty collection from the three precious metals during the period stood at Rs 10,463 crore.

Chaudhary further said that between May 13 and June 30, 161 kg of smuggled gold were seized and 116 persons were arrested.

On May 13, the Government had hiked import duty on gold, silver and platinum to check discretionary imports and prioritise forex for essential imports like crude oil, fertilisers, industrial raw materials and capital goods.

The war in West Asia and the effective blockade of the Strait of Hormuz had raised prices of crude oil and food, fertiliser imports. 

Gold imports in India, the world’s second biggest gold consumer after China, are driven by the jewellery industry demand. Such imports involve a substantial outflow of foreign exchange.