Concerned that the taxes were further hurting the nation’s already struggling jewelry exports, government and industry officials stated that India’s commerce ministry had backed a long-standing demand from the jewelry industry to lower import rates on gold bars.
The federal budget is due next week, and the commerce ministry has supported cutting the tariffs ahead of schedule. If a tax decrease is approved, Finance Minister Nirmala Sitharaman may announce her interim budget on February 1.
To slash expenses for India’s jewelers, the Gems and Jewellery Export Promotion Council (GJEPC) has urged the government to lower the customs charge on cut and polished diamonds and to cut import duties on all forms of gold from 15 percent to 5 percent.
“India has some of the highest customs duties on gold in the world,” stated GJEPC chairman Vipul Shah.
He claimed that lower taxes would increase exports and decrease imports illegally.
To prevent importers from bringing in gold labeled as findings to avoid paying taxes, the government increased the import tariff on gold and silver findings earlier this week from 11% to 15%. Findings are hooks, clasps, and other fittings used in jewelry production.
Also Read:
India Wants to Increase the Price of Sugarcane for the Upcoming Season.
UAE: Certain Indian Schools have Declared a Three-Day Weekend.
