Gold smuggling is not decreasing whether custom duty is low or high, what is the meaning of Sitharaman’s statement

Where a large amount of gold is imported legally in India, a large amount also comes from smuggling. The government imposes custom duty to control it, but Finance Minister Nirmala Sitharaman says that reducing or increasing custom duty does not affect the import of gold. What does the finance minister mean by this?

Gold smuggling in the country has nothing to do with custom duty, said Finance Minister

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India in the world in terms of gold consumption (Gold demand in India) holds the second position. This entire demand is almost imported (Gold import in India) It is fulfilled only from It is on the import-export balance of the country (India’s Trade Balance) Makes a deep impact. Custom duty on gold by the government to keep it under control (Custom Duty) puts on But the country’s Finance Minister Nirmala Sitharaman Nirmala Sitharaman says that whether the custom duty is less or more, it does not affect the gold coming into the country illegally, what is the meaning of this…

What did Nirmala Sitharaman say?

Finance Minister Nirmala Sitharaman said this in ‘Smuggling in India Report 2021-22’ (Smuggling in India Report) While releasing the report of He said that whether the custom duty on gold is less or more, it has no effect on its smuggling. Looks like it has a cycle of its own.

Directorate of Revenue Intelligence in the country (DRI) Monitors illegal import-export along with custom officials. It works to keep a watchful eye on dumping or smuggling of goods from other countries.

How much gold was smuggled?

According to this report, 833 kg of gold in the financial year 2021-22 (Gold Smuggling) Caught. Its value is around Rs 405 crore. DRI and Custom officials have seized gold in about 160 cases at different airports and land routes.

On the other hand, talking about official imports, gold worth Rs 3798.45 billion was imported in the country in the financial year 2021-22. Whereas in the financial year 2020-21, Rs 2850.07 billion was imported. That is, in the year itself, an increase of 33.34 percent has been registered in it. Means custom duty on gold has not had any effect on its import or illegal arrival.

How much is the custom duty on gold?

The Finance Minister says that on an average 800 kg of gold is caught in India every year during smuggling. It is like cumin in the mouth of a camel. To control this, the government has increased the custom duty on gold to 12.5 percent.

On the other hand, according to a news from Mint, now the Ministry of Commerce has asked the Ministry of Finance to increase it to 10 percent, because the arrival of illegal gold in the country increases due to high custom duty. However, the Finance Minister does not agree with this. According to him, smuggling of gold completes its cycle.

While the Finance Ministry wants to keep the custom duty at the right level to reduce the import of gold in the country, illegal arrivals lead to loss of revenue on gold imports.

Now smuggling from China-Myanmar

Another special thing has been revealed in the Smuggling in India report that earlier there used to be gold smuggling in the country from the countries of West Asia. But due to increasing monitoring of the government, people engaged in illegal business have found a new route for this.

According to the report, now large scale gold smuggling is done from the land border of Myanmar and China. China has now emerged as the biggest source country. It has also been said in the DRI report that smugglers have also started illegal trade of other goods under the guise of free trade agreements, on which control measures are being taken.

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English Headline: Gold smuggling in India does not belong to custom duty change says Nirmala Sitharaman what does it means.