India Collects Record $1.43 Billion in Customs Duty from Gold, Silver Imports
The Indian government's decision to hike import duties on gold, silver, and platinum has led to a significant increase in customs duty collections. According to Minister of State for Finance Pankaj Chaudhary, the government collected Rs 10,463 crore in customs duty from imports of these precious metals between May 13 and August 2.
The import duties on gold and silver were raised to 15% from 6%, while the duty on platinum was increased to 15.4% from 6.4%. This move aimed to curb discretionary imports and prioritize foreign exchange for essential items such as crude oil, fertilizers, industrial raw materials, and capital goods.
The government's decision came amidst 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 and other imports. To enforce this duty hike, enforcement agencies seized 161 kg of smuggled gold and arrested 116 persons between May 13 and June 30.