Explainer: Why gold smuggling is booming and seizures are growing | Today’s news

Why does gold smuggling continue?

As a precious metal, even a small amount of gold earns a smuggler a fortune. Its value-to-weight ratio also allows smugglers to hide significant quantities in luggage, clothing, vehicle parts and machinery. After India doubled import duties on gold earlier this year, duty-evading gold has become much cheaper in comparison. In May, the Ministry of Finance increased the total import duty on gold, silver and platinum from 9.18% to 18.4%. 5%, in an effort to limit imports, save forex and protect your current account. At the time, the Gems and Jewelery Export Promotion Council warned that cut tariffs could revive smuggling. “The duty was reduced earlier to curb smuggling. Since the duty is now higher, all security agencies will have to remain alert as such activities may increase,” said its chairman Kirit Bhansali.