Smuggling of gold on the rise following record prices, high duty

Mumbai: Apart from price hike, high import duty and cancellation of international flight services, smuggling of gold is increasing in the country. A total of 18% duty is levied on gold along with 3% GST. Large-scale smuggling of gold and silver has been caught in the country. In the 11 months from April last year to February of the current year, various agencies of the country seized 3990 kg of smuggled gold. According to the received government figures, the figure was 2170 kg in the financial year 2021-22, while it was 1945 kg in 2019-20.

Customs department sources said that there has been a sharp increase in gold smuggling in the financial year 2023. Compared to 2020-21, there was a huge increase in aircraft traffic in the country in the last financial year. The number of passengers also increased accordingly.

Last financial year, 600 kg of gold was seized at Mumbai airport alone. Since the gold prices in India are relatively high, good returns are available here, not only that, India is a large consumer of gold in the world.

Sources said that various techniques were also being tried to smuggle gold into the country recently. Especially gold that is hidden inside the body becomes a bit difficult to catch.

Most of the gold is smuggled into India from African countries including Sudan. Not only Mumbai but also from airports like Lucknow, Chandigarh, Bangalore, Chennai, Kochi, smuggled gold has been found to be smuggled into the country.

It is to be mentioned here that in the financial year 2023, more than 15 percent return was released on gold investment. Apart from safe haven investment, the demand for gold in the country is also high due to high returns.