Import Restrictions On Gold

The government on Wednesday imposed import restrictions on certain gold jewellery and articles, a move which would help cut the import of non-essential items.

Earlier, a 12.5 per cent excise duty was scrapped along with other local taxes when a goods and services tax (GST) was introduced on July 1.

The government has tried to curb costly bullion imports and put restrictions on cash transactions.

The Minister noted that besides increase in Customs duty rates, factors like fluctuation in international price of gold and other restrictions on import of gold also contributed to the increase in incidence of gold smuggling.

Import restrictions on gold led to a rise in its smuggling and the various ways adopted to illicitly bring in the precious metal in the country include concealment in passenger's body, aircraft, baggage and smuggling at land borders and coastal areas, Parliament was informed today.

Gold imports surged 78.33 per cent year-on-year to $3.13 billion in April on declining prices and easing of restrictions by the Reserve Bank of India (RBI).

Import restrictions on gold may have led to increase in smuggling of the precious metal in recent years, Parliament was informed on Friday.

The country's overall trade performance signals an opportune time for removal of restrictions on gold, says the Economic Survey.

Government had imposed severe restrictions late last year on gold imports, including an increase in import duty to 10 per cent to check burgeoning current account deficit and sliding rupee. The steps, in line with the Centre's aim to help lower gold imports, also led to increased instances of smuggling.

Gold imports prior to abolition of the 80:20 scheme may not be subject to restrictive provisions imposed by the Reserve Bank of India (RBI) to contain import of the precious metal.

Bullion traders attributed the fall in gold prices to easing restrictions on gold imports by the RBI by scrapping the controversial scheme, which is likely to enhance supplies and check smuggling of the precious metal.

India, the world's second-largest gold buyer, is likely to announce some new measures to rein in gold imports which might include restrictions on a group of private trading firms.

Officials from the Reserve Bank and finance ministry have been meeting regularly over the past few days to discuss possible curbs on gold imports and fresh restrictions on the shipment of the yellow metal looks imminent, sources told NDTV. Rising gold shipments in the country seem to be the immediate trigger for import curbs.

The government will take a decision on easing of restrictions on gold imports after studying the issue in detail, Commerce and Industry Minister Nirmala Sitharaman said on Friday.

The government is mulling over reimposing some restrictions on gold imports after Diwali as higher inward shipments of the metal in the last few months have pushed up the trade deficit, a government official said.

The government on Wednesday imposed import restrictions on certain gold jewellery and articles, a move which would help cut the import of non-essential items.

Earlier, a 12.5 per cent excise duty was scrapped along with other local taxes when a goods and services tax (GST) was introduced on July 1.

The government has tried to curb costly bullion imports and put restrictions on cash transactions.

The Minister noted that besides increase in Customs duty rates, factors like fluctuation in international price of gold and other restrictions on import of gold also contributed to the increase in incidence of gold smuggling.

Import restrictions on gold led to a rise in its smuggling and the various ways adopted to illicitly bring in the precious metal in the country include concealment in passenger's body, aircraft, baggage and smuggling at land borders and coastal areas, Parliament was informed today.

Gold imports surged 78.33 per cent year-on-year to $3.13 billion in April on declining prices and easing of restrictions by the Reserve Bank of India (RBI).

Import restrictions on gold may have led to increase in smuggling of the precious metal in recent years, Parliament was informed on Friday.

The country's overall trade performance signals an opportune time for removal of restrictions on gold, says the Economic Survey.

Government had imposed severe restrictions late last year on gold imports, including an increase in import duty to 10 per cent to check burgeoning current account deficit and sliding rupee. The steps, in line with the Centre's aim to help lower gold imports, also led to increased instances of smuggling.

Gold imports prior to abolition of the 80:20 scheme may not be subject to restrictive provisions imposed by the Reserve Bank of India (RBI) to contain import of the precious metal.

Bullion traders attributed the fall in gold prices to easing restrictions on gold imports by the RBI by scrapping the controversial scheme, which is likely to enhance supplies and check smuggling of the precious metal.

India, the world's second-largest gold buyer, is likely to announce some new measures to rein in gold imports which might include restrictions on a group of private trading firms.

Officials from the Reserve Bank and finance ministry have been meeting regularly over the past few days to discuss possible curbs on gold imports and fresh restrictions on the shipment of the yellow metal looks imminent, sources told NDTV. Rising gold shipments in the country seem to be the immediate trigger for import curbs.

The government will take a decision on easing of restrictions on gold imports after studying the issue in detail, Commerce and Industry Minister Nirmala Sitharaman said on Friday.

The government is mulling over reimposing some restrictions on gold imports after Diwali as higher inward shipments of the metal in the last few months have pushed up the trade deficit, a government official said.