Now Reading: Kerala jewellers urge Centre to review gold import duty hike
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Kerala jewellers urge Centre to review gold import duty hike
Kerala jewellers have urged the Centre to review the steep import duty on gold and silver, warning that the 15% levy has fuelled smuggling and crippled legitimate trade. The Kerala Gold and…
The Story in Brief
Kerala jewellers have urged the Centre to review the steep import duty on gold and silver, warning that the 15% levy has fuelled smuggling and crippled legitimate trade. The Kerala Gold and Silver Merchants Association said government data shows a sharp rise in gold and silver smuggling since the duty hike from 6% to 15% on May 13, 2026. Minister of State for Finance Pankaj Chaudhary told Parliament that customs collected Rs 10,463 crore from gold, silver and platinum imports between May 13 and August 2, 2026, and that 161 kg of smuggled gold was seized with 116 arrests between May 13 and June 30. The government raised duties to curb foreign exchange outflows amid the West Asia war and Strait of Hormuz blockade, which have pushed up crude, food and fertiliser import costs. India is the world’s second biggest gold consumer after China.
The Indian Opinion
Higher import duties on gold have predictably backfired. The government’s Rs 10,463 crore duty collection between May and August 2026 masks the smuggling surge and revenue loss from legal trade. Keralam jewellers rightly call for a balanced policy, not knee-jerk protectionism. Will the finance ministry admit its miscalculation before black markets thrive further?
Sources (2): thehindubusinessline.com, thehindubusinessline.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
