Jewellery industry seeks import duty cuts in upcoming budget

A range of gem and jewellery industry businesses and organisations are hoping for reductions in import duties on numerous product categories in the upcoming government budget. The Gem and Jewellery Export Promotion Council has requested the government’s help to boost exports with more favourable rates.

The GJEPC held a pre-budget meeting with finance minister Nirmala Sitharaman in New Delhi to discuss current financial issues affecting the jewellery industry, the Press Trust of India reported. Noting that the gem and jewellery sector contributes approximately 10% of India’s total merchandise exports, the GJEPC requested the the import duties on gold, silver, and platinum bars are reduced.
 
“The council has also sought a reduction in import duty on precious metals ‘gold bar’ from 15% to 4%,” said the GJEPC in a statement, the Press Trust of India reported. “This will ensure that duty blockage of around Rs 982.16 crore can be released, resulting in more working capital in hand for industry.”
 
The GJEPC also detailed the challenges the diamond industry is currently facing in terms of rough diamond sourcing due to world politics, ET Bureau reported. The traders’ body thus requested that the government permit the sale of rough diamonds in Special Notified Zones. The GJEPC has asked for the introduction of a duty drawback scheme for platinum jewellery exports as well.