Now Reading: Kerala jewellers seek review of gold, silver import duty structure
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Kerala jewellers seek review of gold, silver import duty structure
Kerala jewellers seek review of gold, silver import duty structure
The Kerala Gold and Silver Merchants Association (KGSMA) has urged the Centre to immediately review the import duty on gold and silver, now at 15 per cent after being raised from 6…
The Story in Brief
The Kerala Gold and Silver Merchants Association (KGSMA) has urged the Centre to immediately review the import duty on gold and silver, now at 15 per cent after being raised from 6 per cent. The association warns that the steep hike has widened the price gap between international and domestic markets, making smuggling more profitable. Government data shows a sharp rise in gold and silver smuggling cases, with silver seizures increasing manifold. S. Abdul Nazar, KGSMA state general secretary, said legitimate jewellers face higher costs and unfair competition from smuggled metal, while legal imports and government revenue have declined. The association argues that a balanced duty policy would encourage legal imports, improve tax collections, and discourage smuggling.
The Indian Opinion
The familiar narrative that high import duties protect domestic industry overlooks the reality in gold and silver: they fuel a thriving black market. The duty hike from 6 to 15 per cent has predictably boosted smuggling, as history shows. Legitimate businesses suffer, and the government loses tax revenue. The real test will be whether the Centre cuts duties in the upcoming budget to align revenue with compliance, or continues a policy that enriches smugglers at the expense of honest traders.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
