Budget 2022: Jewellery council seeks import duty cut on precious metals
- GJEPC has urged the Centre to reduce the import duty on precious metals
- The council sought an extension of the sunset clause for SEZ units
- It seeks a special package for the gems and jewellery industry
The Gems and Jewellery Export Promotion Council (GJEPC) has put forth its recommendations for Budget 2022. The body has urged the Centre to reduce the import duty on precious metals such as gold, silver and platinum from 7.5% to 4%.
GJEPC also urged the government to reduce import duty on cut and polished diamonds and cut and polished precious and semi-precious gemstones from 7.5% to 2.5%. The body also sought an amendment in tax provisions to allow the sale of rough diamonds in the ‘Special Notified Zone’ in Mumbai. At present, only viewing of rough diamonds is allowed in the SNZ and no sale is allowed.
The council sought clarification on the online equalisation charge for business-to-business international diamond auctions and an extension of the sunset clause for SEZ units, as it would allow the SEZ units to stay competitive in the international markets.
The jewellery body also asked the government to permit exporters to import 10% of total cut and polished diamonds at 0% duty.
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Colin Shah, Chairman of GJEPC, said India is the fifth largest exporter of gems and jewellery as it contributes 5.8% of the global gems and jewellery exports. For the current fiscal, India will achieve the target of $41 billion in exports for this sector. “We now target to achieve $100 billion exports when India observes the centenary of its Independence,” he was quoted as saying.
He said that the reduction in import duty on precious metals such as gold, silver and platinum would be a step towards making India “the number one” exporter of jewellery in the world.
Shah appealed to the government to announce a special package for the gems and jewellery industry in the upcoming budget. Favourable export and domestic policies would help elevate gems and jewellery exports and lay a foundation for quantum growth. The development of this sector is only possible through policy reforms, which will make India more competitive in the global market.