GJEPC has urged the Center to reduce the import tax on gold from 7.5% to 4%.
New Delhi:
The Gems and Jewelry Export Promotion Council (GJEPC) has urged the government to reduce the import tax on gold from 7.5% to 4% and have a special package for the sector in the upcoming Budget to promote shipments.
As part of its pre-Budget recommendations, the council also proposed reducing import duties on cut and polished diamonds; cutting and grinding precious and semi-precious stones from 7.5% to 2.5%.
“If (gold) imports at a tax rate of 4%….working capital up to Rs 225 crore will be blocked instead of Rs 500 crore,” the council said in a statement.
Other council proposals include amending tax provisions to allow rough sales in the Special Notice District in Mumbai; clarification on online equality tax for international diamond auction business; and extend the decommissioning clause for SEZ units, as it would allow SEZ units to remain competitive in the international market.
GJEPC President Colin Shah said India is the fifth largest exporter of gems and jewelry, contributing 5.8% of total global gem and jewelry exports.
“We will hit our target of $41 billion for the sector (for the current fiscal). We now aim to hit $100 billion in exports as India will celebrate its 100th anniversary of independence. To begin the same, we urge the government to announce the Shah said special package for this sector in the upcoming Union Budget.
He added that the only way to further scale this sector is through policy reforms, which will make us more competitive in the global market.
“We have requested reduction of import duties on cut and polished diamonds; permission to sell rough diamonds in the Special Notice Zone in Mumbai… This will not only help the Indian diamond industry to continue to be home to the diamond industry. the world’s largest diamond producer but also makes us the largest diamond trading hub,” added Shah.
He thinks the reduction of import duties on precious metals – gold, silver and platinum – will be a step towards making India the number one jewelry exporter in the world.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
