Winning Bizness Desk

Mumbai. India is one of the largest importers of gold in the world as, traditionally, gold has been considered a safe investment method in India. It is considered auspicious to buy and give them as gifts during festivals or weddings. Recently, the price of gold has increased rapidly. Similarly, gold smuggling has increased in India. As much as 2000 kg of stolen gold has been seized in the country. In 2022, India had imported gold worth 35 billion dollars, equivalent to Rs 2,91,060 crore in Indian currency. After crude oil (petroleum), India's highest import bill is gold. The government has also introduced a scheme like 'Sovereign Gold Bond' to reduce the import of gold, but simultaneously, there have been several instances of large amounts of smuggling of gold into the country to meet the demand.

2000 kg gold recovered

Gold smuggling has increased in the country during the first half of the current financial year (April-September 2023). Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Aggarwal said that 2000 kg of smuggled gold has been seized this year which is 43 percent more than the amount of smuggled gold seized during the same period last year. Last year, 1 thousand 400 kg of gold was seized in April-September. In the entire financial year 2022-23, the government had confiscated about 3 thousand 800 kg of gold. Aggarwal says that there has been no difference in the tax and duty on gold this year. Just like last year, the reason for this smuggling could be the rising gold prices globally and locally.

Borders of Myanmar, Nepal and Bangladesh notorious

Smuggling of gold into the country through the borders of Myanmar, Nepal and Bangladesh

Even the authorities of countries like Bangladesh, Nepal and Myanmar did not notice that 2000 kg of stolen gold reached India. Sanjay Kumar Aggarwal said that gold smuggling in India mainly takes place from the borders of Myanmar, Nepal and Bangladesh. According to DRI's 2021-22 report, gold smuggling in India depends on the duty imposed on gold imports and the demand for gold. Currently, there is a custom duty of 12.5 percent on gold in the country. Its imports are subject to agricultural cess at 2.5 percent and IGST at 3 percent. Thus the total tax on gold import is 18.45 percent. At the same time, retail customers have to pay other taxes.