Cases of gold smuggling have increased substantially in Jaipur International Airport. The leniency in Tax laws is one of the reasons for valiant smugglers.
The Customs Act 104 states that an immediate bail will be granted to any person found smuggling gold under worth Rs one crore. The case will face the court only if the smuggling is worth over Rs 1 crore.
In recently reported gold smuggling cases at Jaipur airport, the value of gold was between Rs 30 to 40 lakhs. So, the accused person got bail on the spot from the airport after submitting a security bond.
The government increased the tax on gold eight years ago, which led to an increase in gold smuggling. The customs duty on gold is 10% in India. Most of the gold is smuggled from Bangkok and Dubai. Smugglers make a profit of nearly Rs 3 lakh on the 1 kg smuggled gold.
A group of jewelers and businessman is suspected to be involved in the gold smuggling from foreign countries to India. The employed people are bribed by offering them a free flight ticket and other incentives.
The customs department officials have caught several people smuggling gold at Jaipur airport in the past two years. The cases have doubled in this year compared to the previous financial year.