A landmark budget for GJ industry: GJEPC
Key Highlights:
1: Gold import duty reduced from 12.5% to 7.5%, 2: Silver
import duty reduced from 12.5% to 7.5%, 3: Duty on Platinum reduced to 10%,
4: Clarification Sought - Equalisation Levy of 2%
not applicable on B2B Purchases from International Diamond Auctions &
5: A new Sebi regulated gold exchange has been announced!
GJEPC
welcomes Hon’ble Finance Minister Nirmala Sitharaman’s visionary budget &
welcomes a reduction of customs duty on raw materials like gold, silver and
platinum to boost jewellery exports. The Finance Minister Nirmala Sitharaman
has announced a slew of measures to boost Gem & Jewellery (GJ) exports by
cutting import duty on precious metals such as gold, silver and platinum.
1. The import duty on gold and silver has been reduced from 12.5% to 7.5%, 2. Import duty on Platinum, Pallidum, etc has been reduced from 12.5% to 10%, 3. Import duty on Silver Dore Bar from 11% to 6.1%.
4.The import duty on Gold/Silver Findings has been cut from 20% to 10%, 5. Import duty on spent catalyst or ash containing precious metals from 11.85% to 9.2%, 6. Precious Metal Coins from 12.5% to 10%.
Colin Shah, Chairman, GJEPC said, “We sincerely thank the Hon’ble Prime Minister and Hon’ble Finance Minister for this bold and pragmatic growth-oriented budget.
The reduction in import duty from 12.5 per cent to 7.5 per cent will help the Gem & Jewellery exports become globally competitive. Reduction in duty on raw materials would give the much-needed boost to the sector and help it to move to the next level.
In fact, high duty on precious metal had made our exports noncompetitive leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong or other centres to buy jewellery which was largely impacting the employment as well as business in India.
Along
with this the decrease of import duty on jewellery findings to 10% will help
the jewellery manufacturer exporters in a big way. ”
“Another relief for the industry was the clarification on
Equalisation Levy. What we understand that from the budget is that Online
Equalisation Levy of 2% is now not applicable on B2B purchases from
International Diamond Auctions. This will help our manufacturers of diamonds to
buy directly from miners. Sincere thanks to Hon’ble FM for this relief” adds
Colin Shah.
FM has also announced setting up of a new Sebi regulated gold exchange. The Finance Minister also announced that Securities and Exchange Board of India (Sebi) will be notified as the capital markets watchdog as regulator for gold exchanges. “We welcome the move as this will surely ease marketability and sale of gold,” added Colin.
Thanking
the Prime Minister and Finance Minister for coming out with a visionary budget,
Vipul Shah, Vice Chairman, GJEPC said, “The finance minister has done a
remarkable job by presenting a bold budget in these difficult times. The budget
focused on investments in the infrastructure sector, consolidation of
regulations, implementing digitisation in several sectors and reducing
regulatory forbearance. There were also various measures to improve
consumptions. We want to congratulate finance minister and prime minister for
coming out with a landmark budget.”
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