On Friday, the Ministry of Commerce requested a reduction in the import tax on gold in the 2019 budget, which is expected to be released on February 1, 2023. According to sources, the move to lower import duties was made to encourage exports and production in the gem and jewelry industry.
In the forthcoming Union Budget, which will be unveiled on February 1, 2023, the Ministry of Commerce is pushing for a reduction in the import tax on gold
In July of this year, the centre increased the import tax on gold from 10.75 percent to 15 percent in an effort to curb the current account deficit (CAD) and surging imports of the precious metal. There is a 12.5% general customs charge on gold. The actual gold customs duty will be 15% and will include the agriculture infrastructure development cess (AIDC) of 2.5%.
Also Read: By January 10, Tata Motors will conclude deal to acquire Gujarat facility of Ford India
Ministry of Commerce and Finance receive recommendation from the gem and jewellery sector to reduce the import tax on gold
Gems and Jewelry Industry recommended the Ministry (Commerce and Finance) for a cut in the gold import duty. As per sources “The commerce ministry has encouraged the finance ministry to reduce the duty, as the gems and jewelry industry has advised the commerce ministry. In order to increase production and exports, the ministry has also requested that certain other products’ import duties be adjusted “
The export of diamonds and jewellery pushes for lower import taxes each year. According to Colin Shah, a former chairman of the Gem and Jewellery Export Promotion Council (GJEPC), the industry is counting on the upcoming budget to boost exports and create jobs in the industry.
“A reduction in the customs duty on gold and a progressive strategy for jewellery repairs will be very beneficial to the industry. We also have high hopes for the elimination of duties on the seed used in lab-grown production and presumptive taxation on our specific notified zones for rough diamonds “Shah, who founded Kama Jewelry and serves as its MD, added.
While gold imports fell by 18.13% to USD 27.21 billion from April to November 2022, exports of gems and jewelry increased by 2% to USD 26.45 billion
The council claims that India has the potential to become the global centre for repairs and that this programme can boost exports by up to US$300–400 million. The exports of gems and jewelry increased by 2% to USD 26.45 billion in the period between April and November 2022. During the months of April through November of this fiscal year, gold imports decreased by 18.13% to USD 27.21 billion.
Imports of gold affect the current account deficit (CAD). India is the world’s largest importer of gold, mostly meeting the needs of the jewelry sector. The country yearly imports 800-900 tonnes of gold, measured in volume.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
