The new Union Budget hints that gold smuggling will not come to an end anytime soon. There was widespread demand for a reduction in the import duty on gold. However, the finance minister did not consider it. India is one of the largest importers of gold. Last year, gold imports were valued at $ 55 billion. In addition to direct imports, gold is also being smuggled in on a large scale. A huge underworld is functioning to smuggle gold into the country. Even the official system fails in front of them. Most of us haven't forgotten the incident where gold was smuggled even through the diplomatic channel.

Gold imports are currently levied at around 10.75 per cent, including all duties. The higher the price of gold, the amount to be paid as duty will also go up. Smuggling can be curbed to some extent by reducing the import duty to four percent.

Many may recall that a few years ago when the import duty on gold was reduced to five per cent, smuggling was significantly reduced. Imports will also increase as the demand for gold in the market increases significantly every year. Therefore, even if the government reduces the existing duty, there will be no loss of revenue.

Gold smuggling is one of the major sources of money laundering in the country. Along with the growth of mafia groups, they can also have a major impact on the economy. Smuggled gold arrives in stores as jewellery. The negative impact of gold smuggling on the gold trade is very much evident. Those who trade legally are being forced to suffer the consequences. The main reason for the leakage of taxes due for the states on gold trade items is the ill effects of smuggled gold.

Many airports in the country have become major hubs for gold smuggling. It is no secret that several officials are facilitating gold smuggling to a large extent. Smugglers are interested in smuggling gold to India as the prices here are much higher than in the international market. If the import duty is half of what it is now, there will be a significant reduction in the margins of smugglers as well. The economy will also benefit from this. In the budget, the duty on diamonds and gems has been reduced from seven and a half to five per cent. The Finance Minister should consider the demand of the traders that this change should be applied to gold as well. It will help control smuggling to some extent.