The Gem and Jewellery Export Promotion Council (GJEPC) has called on the Indian government to lower import duties on gold and cut and polished diamonds ahead of the Union Budget. The GJEPC believes that increased import taxes on polished and cut gemstones would lead to lower exports and fewer jobs in the jewellery sector, losing its competitive advantage to rival nations like China and Thailand.
The GJEPC has urged that the current 15 per cent import duty on precious metals be reduced to 4 per cent. The industry body calls for reducing the current 5 per cent customs duty on cut and polished diamonds to 2.5 per cent. This will level the playing field for Indian MSME diamond exporters with that of their larger counterparts.
The Council has also urged the government to take into account its long-standing request to extend the list of organisations permitted to conduct business through Special Notified Zones (SNZs) and to allow the sale of rough diamonds in SNZs via the Safe Harbour Rule. At this point, mining countries only host viewing sessions at SNZs.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
