Government Limits Gold Import Amid Rising Duty and Misuse Concerns

The government set a 100 kg limit on gold imports under the Advance Authorisation scheme to prevent misuse, following a duty hike. New regulations require a mandatory inspection for first-time applicants and periodic performance reports. Gold import duties now total 18.45% to curb expenses amidst economic challenges.

The Indian government has implemented a 100 kg cap on gold imports under the Advance Authorisation scheme, following a significant increase in import duties, aiming to regulate the influx of precious metals and curb potential misuse.

Under this new mandate, first-time applicants seeking import authorisation must undergo a mandatory physical inspection of their manufacturing facilities to assess their capacity and operational status. Furthermore, applicants are required to provide fortnightly performance reports, verified by an independent chartered accountant.

The recent hike in import duty, which raises the tax on gold and silver imports to 15%, is part of wider austerity measures aimed at trimming non-essential imports amid economic turbulence, reflecting the global impact on domestic policies.