Gold Smuggling Declines as Import Duty Slashed

Gold smuggling in India has decreased significantly following a reduction in import duty. The Central Board of Indirect Taxes and Customs has reported substantial seizures despite the challenges posed by porous borders and innovative smuggling tactics. The Directorate of Revenue Intelligence remains vigilant in its anti-smuggling efforts.

Gold smuggling in India has seen a substantial decline since July 2024, following a government decision to reduce the import duty on gold from 15 percent to 6 percent, according to the Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal.

Despite this, customs and Directorate of Revenue Intelligence (DRI) officers continued to seize significant quantities of gold in the early part of the 2024 fiscal year. In the April-June period, 847 kg of gold worth approximately Rs 544 crore was confiscated at airports across the country.

Challenges persist for enforcement agencies, especially concerning the porous borders with neighboring countries like Bangladesh and Myanmar, which are exploited by smugglers. The DRI's recent report highlights that India remains a key destination for illegal gold, with the Middle East, South East Asia, and parts of Africa and Central Asia serving as major smuggling points.

(With inputs from agencies.)