Budget expected: Demand of the gemstone and jewelery industry, import duty on gold to be reduced to four percent in the budget 2023
Budget expected: Demand of the gemstone and jewelery industry, import duty on gold to be reduced to four percent in the budget.
“We request that the government should reduce the customs duty on gold to four percent from the current 12.5 percent,” said Ashish Pethe, president of the All India Gems and Jewelery Household Gems and Jewelery Council (GJC). If the tax rate does not fall at this level.
The Union Budget is to be presented in February. The gems and jewelery industry has demanded a four per cent reduction in customs duty on gold in the budget, as well as withdrawal of tax collected at source (TCS). And reduction of import duty on semi precious gems.
All India Gems and Jewelery Household Gems and Jewelery Council (GJC) President Ashish Pethe said, “We request that the government reduce the customs duty on gold from the current 12.5 percent to four percent. If the tax rate does not fall at this level. , It will promote smuggling and encourage people to carry on unorganized trade.
Ashish Pethe urged that the government should be kept out of the purview of Collection Tax (TCS) provisions under HCN-71 (Harmonized System Nomenclature) in future. He said that the block amount in TCS is 6.67 times more than the ability to pay income tax.
Gems and Jewelery Export Promotion Council (GJEPC) chairman Colin Shah said the government should reduce import duty on precious and semi-precious gems, which is currently 7.5 percent, to 2.5 percent. He further added to the budget recommendations that the import duty on artificially carved and polished gems should be increased from five percent to 25 percent.
Also, according to the Chairman of the GJC, there should be EMI facilities on loan to the gems and jewelery industry and the cash purchase limit should be raised from the current Rs 10,000 to Rs 1 lakh.