India is the largest importer of gold, which mainly targets the jewelery industry.(File)
New Delhi:
The Commerce Department has been seeking a reduction in gold import duties in the upcoming budget to boost exports and production from the gemstone and jewelry sector, sources said.
In July this year, the center raised gold tariffs from 10.75 percent to 15 percent to control the current account deficit (CAD) and rising imports of the yellow metal. The basic customs duty on gold is 12.5 percent. Together with the agricultural infrastructure development (AIDC) cess of 2.5 percent, the effective gold customs duty will be 15 percent.
“While the gem and jewelry industry has recommended that the Department of Commerce reduce import duties, the Department of Commerce has urged the Treasury Department to do the same. The Department has also requested that import duties on certain other products be reduced to boost production and exports,” the sources said.
Each year, the gemstone and jewelry export industry strives for a reduction in import duties.
Former Gems and Jewelery Export Promotion Council (GJEPC) chairman Colin Shah said the industry is pinning its hopes on the forthcoming budget to boost exports and create jobs in the sector. “A reduction in customs duties on gold and a progressive repair policy for jewelery will greatly help the industry. We are also hopeful that presumptive taxes will be levied on our Special Notified Zones for rough diamonds and the elimination of excise duties on the seed that is used for lab-grown diamonds.” production,” said Shah, who is also the founder and MD (Managing Director) of Kama Jewelry.
According to the council, India has the potential to become the repair center of the world and this policy could help boost exports by as much as $300-400 million.
Gemstone and jewelry exports rose 2 percent this year to $26.45 billion in April-November 2022. Gold imports fell 18.13 percent to $27.21 billion in the April-November period of this fiscal year .
Gold imports affect the current account deficit (CAD).
India is the largest importer of gold, which mainly meets the demand of the jewelery industry.
In volume terms, the country imports 800-900 tons of gold annually.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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