Govt Collects ₹10,463 Cr Customs Duty On Gold, Silver, Platinum Since May

Parliament was told on Monday that the government has mopped up ₹10,463 crore in customs duty from gold, silver and platinum imports over a period spanning nearly three months, from May 13 to August 2.

The customs duty on gold and silver was more than doubled, moving from 6% to 15%, while platinum duty rose from 6.4% to 15.4%, both effective May 13. Related categories such as gold and silver dore, coins and findings saw matching revisions.

Responding to a written question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary broke down the numbers. Gold contributed the bulk of the collection at ₹10,040 crore, while silver and platinum brought in ₹328 crore and ₹95 crore, respectively.

Chaudhary also told the House that enforcement agencies seized 161 kg of smuggled gold and made 116 arrests in related cases between May 13 and June 30.

Reason Behind The Hike

The rate revision was aimed at discouraging non-essential imports of gold, silver and platinum, freeing up foreign exchange for priority sectors such as crude oil, fertilisers, industrial raw materials and capital goods. The decision came against the backdrop of rising crude oil, food and fertiliser prices, driven by the conflict in West Asia and the resulting blockade at the Strait of Hormuz.

India trails only China as the world's largest gold consumer, and its import demand is largely fuelled by the jewellery trade. Because such imports draw heavily on foreign exchange reserves, managing this outflow was central to the government's decision to raise duty rates.