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Following Institution of Indian Gold Tax, Gold Smuggling on the Rise

NewsRoomPost  ( Original )
MAR 12, 2018

As more and more US states (37 and counting) stop taxing gold and silver transactions, the world is not necessarily following suit. India started taxing purchases over US$750 or so last year, and the predictable result has been an increase in smuggling.

Gold and silver are money. Taxing gold and silver transactions is as senseless as taxing withdrawals from ATMs.

New Delhi: Last week, yet another seizure of a huge consignment of gold was reported. This time around it was the Chennai team of the Directorate of Revenue Intelligence which seized 23.1 kilograms of gold smuggled into India from Sri Lanka.

This is not just a one off seizure and officials have in the past month alone seized over 50 kilograms of gold and all these operations fell under the DRI Chennai Zonal Unit.

While the past year has seen seizure to the tune of 103 kilograms on the Sri-Lanka India route, the problem has been persisting in Mumbai, Delhi and also at the Nepal border. The Mumbai airport alone recorded seizure to the tune of 125 kilograms of gold in 2017 when compared to the 66 kgs that were seized in 2016.

ORIGINAL SOURCE: The revival of gold smuggling and the role Dubai, China and SL are playing by Vicky Nanjappa at NewsRoomPost on 3/12/18