Gold prices continue to soar, touching as high as $ 630 per 10 gram last week, even as other sectors take a hit amid lockdowns employed by various countries to combat COVID-19. Meanwhile,
the increased interest in the precious metal has also fuelled smuggling, says a report in The Hindu Bussiness Line.
Image credit: PublicPictureDomain (Pixabay)
The Customs Office at Chennai International Airport in the South Indian state of Tamil Nadu has recorded an all-time high in smuggling activity during FY20. As much as 375 kg of gold valued around $20.2mln was seized compared to 271 kg of gold valuing $ 13mln in FY19, said the report.
Total 924 cases of smuggling were booked, compared to 461 in FY19, a 100 per cent jump. The number of arrested also increased from 56 to 136 year-on-year (YoY) as per the data from Chennai Customs.
The report also notes that the increase in smuggling could be attributed to the increase in customs duty from 10 per cent to 12.5 per cent; and the increase in GST from 1 per cent to 3 per cent. There is also the 5 per cent additional GST charge on making of gold ornaments.
All these, coupled with the rupee depreciation against the US dollar and the already high price of the metal, have pushed up the cost of legal import.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
