Govt collects Rs 10,463 crore in customs duty from gold, silver, platinum imports after duty hike

Parliament was informed on Monday that the government collected Rs 10,463 crore in customs duty on gold, silver, and platinum imports from May 13 to August 2, after raising import duties on these precious metals.

In a written response to a Lok Sabha question, Minister of State for Finance Pankaj Chaudhary noted that customs duty collections amounted to Rs 10,040 crore for gold, Rs 328 crore for silver, and Rs 95 crore for platinum during that period.

Thus, the total customs duty collected from the three precious metals reached Rs 10,463 crore for the period.

Effective May 13, the government raised the import duty on gold and silver from 6% to 15%, and on platinum from 6.4% to 15.4%.

Additionally, duty adjustments were applied to related products such as gold and silver dore, coins, and findings.

Chaudhary explained that the move aims to curb discretionary imports and preserve foreign exchange for essential items like crude oil, fertilizers, industrial raw materials, and capital goods.

The duty increase follows growing global uncertainties, notably the West Asia conflict and the effective blockade of the Strait of Hormuz, which have driven up crude oil, food, and fertilizer prices.

The minister further told the House that enforcement agencies confiscated 161 kilograms of smuggled gold and arrested 116 individuals between May 13 and June 30.

India ranks as the world’s second-largest gold consumer after China, with imports primarily driven by jewellery demand.

Gold imports represent a substantial foreign‑exchange outflow and are closely watched by policymakers from a balance‑of‑payments standpoint.