Higher import duties on precious metals have boosted customs collections, while enforcement agencies seized 161 kg of smuggled gold
The Centre collected Rs 10,463 crore in customs duty from imports of gold, silver and platinum between 13 May and 2 August, after sharply raising import duties on precious metals. The revenue comes even as higher duties have raised concerns over illicit gold inflows, with enforcement agencies seizing 161 kg of smuggled gold in the period following the duty increase.
Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday that gold accounted for Rs 10,040 crore of the total collections, while silver contributed Rs 328 crore and platinum Rs 95 crore.
The government raised the effective import duty on gold and silver to 15 per cent from 6 per cent, and on platinum to 15.4 per cent from 6.4 per cent, with effect from 13 May. The revised duty structure also covers gold and silver dore, coins and related products.
The duty increase was aimed at curbing discretionary imports and conserving foreign exchange amid elevated global commodity prices and geopolitical uncertainty. The move reversed the customs duty reduction announced in 2024.
Smuggling Seizures
Chaudhary said enforcement agencies seized 161 kg of smuggled gold and arrested 116 people between 13 May and 30 June. The data comes less than two months after the higher duty rates took effect, highlighting the challenge of containing illicit imports when the cost of bringing gold through official channels rises.
The government has maintained that the revised duty structure would strengthen customs revenue while helping contain foreign exchange outflows from non-essential imports.
The duty increase comes amid a changing backdrop for global bullion prices. Motilal Oswal Financial Services, in its H1 2026 Precious Metals Report, said inflation, interest rates and monetary policy expectations were becoming more important drivers of gold prices than geopolitical tensions alone.
The brokerage said higher US Treasury yields and the dollar had limited gold’s gains in the first half of 2026 despite elevated geopolitical tensions. It expects inflation, Federal Reserve policy, global liquidity, central-bank purchases and investment flows to remain key factors for gold and silver prices in the second half of the year.
