Decent Margin for Smugglers

Published: 06th November 2014 06:02 AM  |   Last Updated: 06th November 2014 06:02 AM   |  A+A-

KOZHIKODE: Due to the difference in rate of gold here and in Dubai, the smugglers can earn a decent margin even after paying taxes and giving a small amount as commission to the passengers.

“Roughly, there is a price difference of around `4 lakh in one kg of 24 karat gold between the two countries. For instance, the rate of one kg 24-karat gold in Dubai on Wednesday was around `22.6 lakh. While rate of the same quantity here was `26.2 lakh. After remitting `2.2 lakh as duty and commission to passengers and arranging tickets for the passengers, one can easily pocket a substantial margin without any risk. “Besides, it was possible to bring gold in bullion form, which only fetched the exact market value from the jewellers,” said a senior official with the Customs and Central Excise Department.

All Kerala Gold and Silver Merchants Association patron Girirajan claimed smuggling of Gold is continuing as there is 10 per cent import duty for gold in India. “As far as jewellers are concerned, despite curbs being imposed by the RBI, gold is available in the market. Hence, there is no need for buying contraband gold,” he said.

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