GJEPC seeks reduction in import duty on polished diamonds

In its Budget recommendations, the Indian diamond industry has sought the following urgent policy reforms including, reduction in import duty on cut and polished diamonds from 7.5% to 2.5%; amendment in taxation provisions to allow the sale of rough diamonds in the Special Notified Zone (SNZ) in Mumbai; and exemption of two-percent equalisation levy on rough diamond sales.
Commenting on the reforms proposed, Colin Shah, Chairman, GJEPC said, “We do not have any natural advantage of rough diamonds, but India has achieved this position because of its proficiency in cutting and polishing rough diamonds. In 2019, India imported maximum rough diamonds of around 157 million carats for processing. India can sustain this position and further scale new heights. The Council has requested the Finance Minister that if customers in India choose to confirm their orders, an invoice can be made within the SNZ. Miners could pay a ‘turnover tax’ not exceeding 0.16%, the prevailing rate in Belgium.”

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished