However, the move by the government to raise the custom duties for the importation of gold and silver has been very rewarding for the government coffers. According to the latest data from the Lok Sabha, the government has collected ₹10,463 crore in custom duty from the importation of gold, silver, and platinum between May 13 and August 2.
This calculation was provided in detail by the Minister of State for Finance, Pankaj Chaudhary, in a written reply to the Parliament. We shall examine how much the government has received from each of the precious metals and also understand the reason for the rise in duty. The contribution of Gold has been the highest towards the government’s total collection during this time period (May 13 -August 2).
- Gold: ₹10,040 crore
- Silver: ₹328 crore
- Platinum: ₹95 crore
On May 13th, the Indian government increased the import duty on gold and silver from 6% to 15%. The duty on platinum was also increased from 6.4% to 15.4%. The primary objective was to curb discretionary imports. Amidst tensions in West Asia and rising prices of crude oil, fertilizers, and other essential industrial raw materials, the government needed to protect its foreign exchange reserves.
The increased import duty also increases the risk of gold smuggling. The government has also maintained a close watch on this front. The Minister of State for Finance stated that between May 13 and June 30, agencies seized 161 kilograms of smuggled gold and arrested 116 people in connection with the case.
However, the move by the government to raise the custom duties for the importation of gold and silver has been very rewarding for the government coffers. According to the latest data from the Lok Sabha, the government has collected ₹10,463 crore in custom duty from the importation of gold, silver, and platinum between May 13 and August 2.
This calculation was provided in detail by the Minister of State for Finance, Pankaj Chaudhary, in a written reply to the Parliament. We shall examine how much the government has received from each of the precious metals and also understand the reason for the rise in duty. The contribution of Gold has been the highest towards the government’s total collection during this time period (May 13 -August 2).
- Gold: ₹10,040 crore
- Silver: ₹328 crore
- Platinum: ₹95 crore
On May 13th, the Indian government increased the import duty on gold and silver from 6% to 15%. The duty on platinum was also increased from 6.4% to 15.4%. The primary objective was to curb discretionary imports. Amidst tensions in West Asia and rising prices of crude oil, fertilizers, and other essential industrial raw materials, the government needed to protect its foreign exchange reserves.
The increased import duty also increases the risk of gold smuggling. The government has also maintained a close watch on this front. The Minister of State for Finance stated that between May 13 and June 30, agencies seized 161 kilograms of smuggled gold and arrested 116 people in connection with the case.