3000 kg of gold being smuggled into country every month: Finance Minister

Written by | January 28, 2014 | 0

New Delhi Jan 28: Finance Minister P Chidambaram on Monday admitted that there has been increase in gold smuggling following the restrictions imposed on imports of the precious metal.

Addressing tax officials at the Customs Day here, he said there has been about 1-3 tonnes (1000-3000kg) of gold smuggled into the country every month following the restrictions imposed on shipment last year.

However, he added, “I know gold smuggling has increased…But the restrictions on gold import were absolutely necessary because it is these restrictions which have brought down gold import which in April and May had crossed 300 tonnes.
“If we had not imposed restrictions, there was no way we could have managed balance of payments or the current account deficit,” the Finance Minister said.

He informed that the restrictions on gold imports will be reviewed by March end

“I am confident that by the end of this year we will be able to revisit some of the restrictions on gold import but we will do so only when we are absolutely sure that we have a firm grip on the current account deficit,” he said.

To contain the rising gold imports, the government had increased customs duty on the yellow metal three times in 2013. The levy currently stands at 10 per cent.
Besides, the Reserve Bank has also linked imports of the metal to exports amid a widening CAD and depreciation of the rupee.

Filed in: National

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