Gold, silver import duty hike: Govt nets ₹10,463 crore in revenue between May 13 and August 2

Between May 13 and August 2, the Indian government collected a staggering ₹10,463 crore in import duty on gold, silver, and platinum, as revealed in a recent parliamentary update. Prior to May 13, the import duty on gold and silver stood at a meager 6%, while that on platinum was 6.4%. However, these duties were significantly hiked to 15% for gold and silver, and 15.4% for platinum, taking effect from the same day.

This dramatic increase aimed to curb discretionary imports and prioritize foreign exchange for vital necessities such as crude oil, fertilizers, industrial raw materials, and capital goods.

In response to queries in the Lok Sabha, Finance Minister's spokesperson, Pankaj Chaudhary, disclosed that the government managed to gather Rs 10,040 crore in customs duty on gold during the aforementioned period. Additionally, Rs 328 crore and Rs 95 crore were collected as duties on silver and platinum, respectively. Cumulatively, these figures amount to the impressive total of Rs 10,463 crore.

Furthermore, during the same timeframe, authorities seized a substantial amount of smuggled gold - 161 kg - and arrested 116 individuals. This move was initiated by the government on May 13, which also saw the imposition of higher import duties on gold, silver, and platinum. The rationale behind this decision was to curb foreign exchange outflows, particularly driven by the burgeoning demand for gold jewelry in India, the second-largest consumer of gold globally, after China.

The escalation in crude oil and food, fertilizer, industrial raw materials, and capital goods prices, triggered by the war in West Asia and the blockade of the Strait of Hormuz, played a pivotal role in prompting these measures.