ASSOCHAM urges Indian government to cut gold import duty to 5%

The Associated Chambers of Commerce and Industry in India (ASSOCHAM) had pleaded for urgent cut in gold import duty to 5% from the current 10%

CALCUTTA (Scrap Monster): The Associated Chambers of Commerce and Industry in India (ASSOCHAM) had pleaded for urgent cut in gold import duty to 5% from the current 10%. Sankar Sen, Eastern region Council Chairperson requested the government to act immediately to curb the unprecedented surge in gold smuggling acts through India’s porous border with Nepal and Bangladesh.

According to Sen, Nepal and Bangladesh has emerged as the transit points for yellow metal smuggling acts. Sources from Nepal Revenue Intelligence indicate that gold smuggling acts have become rampant at its borders with India. As per rough estimates, 60 kg to 80 kg of the precious metal enters India through Indo-Nepal border every single day. It has become a lucrative business for smugglers as sneaking one kilogram of gold leads to net savings worth over Rs 1.5 lakhs.

The consignments of gold imported mainly from Hong Kong and Thailand are shifted to storage houses across the border. The human couriers then make several trips carrying small quantities of gold which makes them difficult to trace by authorities. The carted gold is then collected and shipped to jewellers in nearby Indian cities.

The reduction of import duty to 5% would check gold smuggling incidents and save the livelihood of gold artisans in the region, ASSOCHAM noted. It also urged the government to introduce strict punishment on gold smuggling. During 2013, gold worth over $9 billion had entered India through unofficial channels.