To address the current account deficit (CAD) and surging imports of the yellow metal, the Centre increased the import levy on gold from 10.75 per cent to 15 per cent in July of this year. 12.5 per cent is the standard customs charge on gold.
The Commerce Ministry has requested that the import duty on gold be reduced in the upcoming Budget in order to boost exports and manufacturing in the gems and jewellery sector, PTI quoted sources as saying.
To address the current account deficit (CAD) and surging imports of the yellow metal, the Centre increased the import levy on gold from 10.75 per cent to 15 per cent in July of this year. 12.5 per cent is the standard customs charge on gold. The actual gold customs duty will be 15 per cent after adding the agriculture infrastructure development cess (AIDC) of 2.5 percent.
“As the gems and jewellery industry has recommended the Commerce Ministry for a cut in the duty, the Commerce Ministry has urged the Finance Ministry for the same. The Ministry has also asked for tweaking import duty on certain other products to boost manufacturing and exports,” PTI quoted sources as saying.
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.
“Customs duty cut on gold and a progressive repair policy for jewellery will help the sector immensely. We are also very hopeful that there will be presumptive taxation on our special notified zones for rough diamonds and abolition of duty on the seed used for lab-grown production,” Shah, who is also the founder and MD of Kama Jewelry, said.
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 $300–400 million.
In the period between April and November 2022, exports of gems and jewellery increased by 2 per cent to $26.45 billion. During the months of April through November of this fiscal year, gold imports decreased by 18.13% to $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 jewellery sector.
The nation yearly imports 800-900 tonnes of gold, measured in volume.
Source : businesstoday.in/ For more details