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GJEPC requests Centre to slash import duty on gold, diamond

“In order to help realise India’s dream of becoming the premier global destination of gems and jewellery, the government should look into cutting import duty on gold from 12.5 per cent to 4.5 per cent and on diamonds from 7.5 per cent to 2.5 per cent," said GJEPC chairman.

By: Express News Service | Surat | Updated: December 1, 2020 1:00:12 am
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The Gems and Jewellery Export Promotion Council (GJEPC) — the parent body of the diamond and jewellery across the country — has requested the Union Ministry of Commerce and Industry to reduce the import duties on gold and diamonds, while welcoming the decision to allow trade through e-commerce.

At an event of the Confederation of Indian Industries (CII) in Mumbai, GJEPC chairman Colin Shah made a request to Union minister Piyush Goyal, saying, “In order to help realise India’s dream of becoming the premier global destination of gems and jewellery, the government should look into cutting import duty on gold from 12.5 per cent to 4.5 per cent and on diamonds from 7.5 per cent to 2.5 per cent. We will continue to lose business if gold continues to be expensive for foreigners and NRIs… The trade is also impacted by the growth in the parallel market due to high duty on gold.”

Talking to The Indian Express, Shah said, “We have got good response from the Union minister who has forwarded our proposals to the finance ministry. Our suggestions on the refund of taxes, logistics and financing SEZs, are also been looked into.”

According to him, cutting import duties would help India become a manufacturing and trading hub. “At present, NRIs go to Dubai and other countries where duty is low to purchase gold. If the duty is cut down, we can be a trading hub in terms of diamonds and jewellery.”

The central government had recently approved the proposal of GJEPC to allow diamond jewellery trade through courier mode. Shah said, “So far there was no e-commerce for gems and jewellery. With this positive approach from the government, now it is possible to ship jewellery through courier mode… it will help customers abroad as well as traders…”

GJEPC Gujarat region chairman, Dinesh Navadia, said, “Due to the heavy import duties of gold and diamond, we cannot compete in the international market as our production costs goes up. Diamond traders face great loss as they have to pay import duty on the unsold items brought back after participating in international exhibitions… Even broken diamonds and other polished diamonds also are liable to pay import duty.”

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