GJEPC Welcomes Exemption of Gold, Silver Cess for Exporters

SEATTLE (Scrap Monster): The Gem and Jewellery Export Promotion Council (GJEPC) welcomed the government’s decision to exempt the Agriculture Infrastructure and Development Cess (AIDC) on gold and silver bars and dore for exporters. The Council said the move will significantly boost exports of jewellery from the country.

The cess had been badly impacting jewellery exports from the country. It, being not a part of import duty, has been making jewellery exports unviable and uneconomical. The additional cess used to hamper the exports, as jewelleries are sold on international pricing of gold, said Colin Shah, Chairman, GJEPC.

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Shah noted that the announced exemption of cess on gold, silver dore and bars is a master stroke by the government. It would have positive implications on the growth of the gems and jewellery export sector. The move has come as a great relief to the exporting community, Shah added.

The notification in connection with the exemption was issued by the Finance Ministry on 17^th February. Meantime, the notification clearly stated that the cess will be applicable for gold and silver bars and dore imported for domestic use.

The GJEPC noted that the recent decision by the government to reduce import duty on gold and silver from 12.5% to 7.5% will also provide big boost to the industry.