New Delhi: High customs duty on gold has skewed the jewellery market in such a way that not only is the yellow metal being smuggled in huge quantities, a fact admitted by finance minister P Chidambaram, but there has been an unprecedented rise in legal import of gold through air passengers.
December saw 2,500kg of gold brought in this way. Sources said gold brought in legally by passengers flying into India never crossed 30-40kg a month. Financial agencies said this reflected that there was huge premium in the market on gold due to high demand and short supply.
Air passengers, living abroad, are allowed to carry 1kg gold into India after paying duty. Many jewellers, instead of risking smuggling, are tapping such frequent flyers, paying for their ticket and making them carry gold legally.
29/01/14 Deeptiman Tiwary/Times of India
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December saw 2,500kg of gold brought in this way. Sources said gold brought in legally by passengers flying into India never crossed 30-40kg a month. Financial agencies said this reflected that there was huge premium in the market on gold due to high demand and short supply.
Air passengers, living abroad, are allowed to carry 1kg gold into India after paying duty. Many jewellers, instead of risking smuggling, are tapping such frequent flyers, paying for their ticket and making them carry gold legally.
29/01/14 Deeptiman Tiwary/Times of India
