A landmark budget for the gem & jewellery industry!
GJEPC welcomes Hon’ble Finance Minister Nirmala Sitharaman’s visionary budget; reduction of customs duty on raw materials like gold, silver, and platinum to boost jewellery exports.
Finance Minister Nirmala Sitharaman has announced a slew of measures to boost Gem & Jewellery exports by cutting import duty on precious metals such as gold, silver, and platinum.
1. The import duty on gold and silver has been reduced from 12.5% to 7.5%
2. Import duty on Platinum, Pallidum, etc has been reduced from 12.5% to 10%
3. Import duty on Silver Dore Bar from 11% to 6.1%
4. The import duty on Gold/Silver Findings has been cut from 20% to 10%
5. Import duty on spent catalyst or ash containing precious metals from 11.85% to 9.2%
6. Precious Metal Coins from 12.5% to 10%.
Colin Shah, Chairman, GJEPC said, “We sincerely thank the Hon’ble Prime Minister and Hon’ble Finance Minister for this bold and pragmatic growth-oriented budget.
The reduction in import duty from 12.5 percent to 7.5 percent will help the Gem & Jewellery exports become globally competitive. Reduction in duty on raw materials would give a much-needed boost to the sector and help it to move to the next level. In fact, high duty on precious metal had made our exports uncompetitive leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong, or other centers to buy jewellery which was largely impacting the employment as well as business in India. Along with this, the decrease of import duty on jewellery findings to 10% will help the jewellery manufacturer exporters in a big way. ”
“Another relief for the industry was the clarification on Equalisation Levy. What we understand that from the budget is that an Online Equalisation Levy of 2% is now not applicable on B2B purchases from International Diamond Auctions. This will help our manufacturers of diamonds to buy directly from miners. Sincere thanks to Hon’ble FM for this relief.” adds Colin Shah
FM has also announced setting up of a new Sebi regulated gold exchange. The Finance Minister also announced that the Securities and Exchange Board of India (Sebi) will be notified as to the capital markets watchdog as a regulator for gold exchanges. “We welcome the move as this will surely ease marketability and sale of gold,” added Colin.