GJEPC Urges Government to Cut High Gold Import Duty

SEATTLE (Scrap Monster): The Gem & Jewellery Export Promotion Council (GJEPC) has called for reduction in import duty in the upcoming Union Budget to be presented before the parliament on February 1, 2020.

The Council demanded reduction in import duty on cut and polished gemstones from 7.5% to 2.5%. The high duty structure has led to 10% decline in exports of diamond-studded jewellery in 2019. It has also impacted trade of small-sized diamonds. According to GJEPC, the prevailing 7.5% duty will make the domestic diamond industry uncompetitive upon comparison with peer markets.

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 The 12.5% duty on imports of gold, silver and platinum has impacted organized players in the industry. This has led to significant increase in gold imports from countries such as South Korea and Malaysia, with whom India has entered into Free Trade Agreements (FTAs). At the same time, imports of precious metals through unofficial channels have reported multi-fold surge. The Council urged the government to reduce the duty to 4.5%.

Apart from hampering the export competitiveness of domestic industry, the escalated duty structure has also led to reduced purchases. The lack of sector activity has led to significant job loss, GJEPC noted.