Jewellery Trade Body Seeks Reduction In Gold Import Duty

GJEPC has urged the Centre to scale back import responsibility on gold to 4 per cent from 7.5 per cent.

New Delhi: Gems and Jewellery Export Promotion Council (GJEPC) has urged the federal government to scale back import responsibility on gold to 4 per cent from 7.5 per cent and a particular bundle for the sector within the forthcoming Budget to spice up shipments.

As a part of its pre-Budget suggestions, the council has additionally prompt a discount within the import responsibility on reduce and polished diamonds; reduce and polished valuable and semi-precious gems from 7.5 per cent to 2.5 per cent.

"If (gold) imported at 4 per cent duty rate....working capital amounting to Rs 225 crore would be blocked instead of Rs 500 crore," the council stated in an announcement.

The different ideas of the council embrace an modification in taxation provisions to permit the sale of tough diamonds in Special Notified Zone in Mumbai; clarification on online equalisation levy for enterprise to enterprise worldwide diamond auctions; and extension of the sundown clause for SEZ models, as it might enable the SEZ models to remain aggressive within the worldwide markets.

GJEPC Chairman Colin Shah stated India is the fifth largest exporter of gems and jewelry, contributing 5.8 per cent of the worldwide gems and jewelry exports.

"We will achieve the target of $41 billion for this sector (for the current fiscal). We now target to achieve $100 billion exports when India will observe the centenary of its independence. To kickstart the same, we appeal to the government to announce a special package for the sector in the forthcoming Union Budget," Shah stated.

He added that the one solution to additional scale up this sector is thru coverage reforms, which is able to make us more aggressive within the world market.

"We have requested to reduce import duty on cut and polished diamonds; permit the sale of rough diamonds in Special Notified Zone in Mumbai...This will not only help the Indian diamond industry to remain as the largest diamond producer of diamonds in the world but would also help us to become the largest diamond trading hub," Shah added.

He stated that the discount in import responsibility on valuable metals - gold, silver and platinum - can be a step in direction of making India "the number one" exporter of jewelry on the earth.