1 January 2026,
Thursday
1 January 2026,
Thursday
Gold Smuggling from Dubai: Recently, Kannada and Tamil film actress Ranya Rao was arrested by the Directorate of Revenue Intelligence with 14.8 kilograms of gold upon her return from Dubai. Numerous cases of gold smuggling from Dubai have come to light, raising the question: why is gold smuggling predominantly originating from Dubai? Let's find out.
The price of 24-carat gold in Dubai is ₹7,929.85 per gram, while in India it is ₹8,764 per gram, a difference of ₹834.15 (approximately 10%). Making charges in India range from 8-25%, compared to 5-8% in Dubai. Therefore, jewellery purchased in Dubai is approximately 18-20% cheaper overall.
In India, gold attracts a 12.5% import duty, 3% GST, and 5% agricultural cess, resulting in a total tax of approximately 20%. In contrast, Dubai has no import duty on gold, and only a 5% VAT applies (which tourists can reclaim), effectively making the tax negligible.
Yes, gold can be legally imported from Dubai, but the quantity and process are regulated. Indian male passengers can bring up to 20 grams (₹50,000) of jewellery, and female passengers up to 40 grams (₹1,00,000), but not in the form of biscuits, bars, or coins. Passengers returning from abroad after a stay of more than six months can import up to 1 kg of gold by paying customs duty (20-50 grams: 3%, 50-100 grams: 6%, over 100 grams: 10%).
The primary benefit of smuggled gold is its lower price. The cash transactions involved help launder black money. In India, approximately 25-30% (200-300 tonnes) of gold purchases are made using black money.
In the financial year 2023-24, Customs seized approximately 4,869 kg of gold, and the Directorate of Revenue Intelligence seized 1,319 kg.
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