GJEPC Urged Government to Cut Gold Import Duty to 4%

SEATTLE (Scrap Monster): The Gems and Jewellery Export Promotion Council (GJEPC) has urged the government to take necessary actions to reduce the duty on gold imports to 4% from existing 7.5%. The reduction of import duty could reduce the magnitude of blocked working capital.

Furthermore, it called for implementation of a special package for the sector to boost shipments. Also, it suggested that import duty on cut and polished diamonds as well as cut and polished and semi-precious gemstones from 7.5% to 2.5%. The above proposals were raised as part of the trade body’s pre-budget recommendations.

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GJEPC also called for an amendment in taxation provisions to allow the sale of rough diamonds in Special Notified Zone in Mumbai and extension of the sunset clause for SEZ units. Also, it sought clarification on online equalisation levy for business to business international diamond auctions.

Colin Shah, Chairman, GJEPC noted that it targets to raise yearly exports from the sector from current levels of $41 billion to $100 million by the time India celebrates the centenary of its independence. The Indian industry could be made more competitive in the global market, only through policy reforms, he added.

As of now, India accounts for nearly 5.8% of the global gems and jewellery export market, GJEPC said.