As demand for the yellow metal continues to decline, the Indian jewellery sector has knocked on the doors of government to provide them some relief from higher import duty. The gems and jewellery industry has asked the government to pare import duties on gold from the current 10 per cent to 4-5 per cent.
The Gem and Jewellery Export Promotion Council (GJEPC) has already made its representation to the Finance Ministry and the Commerce Ministry and is hopeful of favourable action on the import duty front before the Union Budget for 2018-19.
Praveen Shankar Pandya, chairman of GJEPC said on Monday, “India needs to reduce import tax on gold to 4-5 per cent from current 10 per cent, higher tax is hurting local jewellery sector.”
He expects exports to stagnate at $43 billion this year because of the existing high customs duty on gold, the implementation of the Goods & Services Tax, low global demand situation and the value added tax to be introduced by Dubai in January. Exports can increase only if the government brings down import duty and gives the industry an incentives package, Pandya added.