Jewellers seek cut on import duty of gold, abolishment of 80:20 scheme
Updated: Jun 11, 2014 01:09:46pm
Mumbai, Jun 11 (KNN) The All India Gems and Jewellery Trade Federation (AIGJTA) has approached the Finance Ministry to cut import duty on gold to two per cent from 10 per cent but increase the same on the finished product of jewellery to boost the domestic processing units.
Past Chairman and present Board Member of All India Gems and Jewellery Trade Federation, Ashok Minawala told KNN that they have made a representation to the Finance Minister mainly on two key issues along with other minor issues.
Although the business at several shops has gone up in the last month, the jewellery industry still faces challenges such as scarcity of raw material and customs duty of 10 per cent on gold.
“We have approached the FM to reduce the import duty on gold to two per cent from 10 per cent,” said Minawala, who is also heading the committee formed to make the representation on behalf of the federation.
High import duty has given rise to smuggling of gold. If the duty is reduced to two per cent, people would find it easier to pay duty and import gold rather than smuggling,” Minawala said.
The federation also said it has urged the Ministry to abolish the 80:20 scheme introduced in August, 2013.
According to the scheme, nominated agencies can import gold on the condition that 20 per cent of the imported amount will be exported. The permission to import the next lot will be given on fulfilment of the export obligation.
“The key issue that the industry is facing is the 80:20 scheme. The import of gold should not be linked to the export,” he added.
The federation has also sought decrease in customs duty from 10 per cent to four per cent in order to bring down the cost and reduce the scarcity of gold.
Further, the federation will also demand to increase the maximum limit of cash in exchange of gold from Rs 20,000 to Rs 2 lakh.
Speaking to reporters in Chennai yesterday at the launch of the ‘Labham’ programme for jewellers in Tamil Nadu, , vice-chairman of AIGJTF, Manish Jain said sales had risen since premium had fallen from Rs 1,500/10g to about Rs 500, following a few recent initiatives by the central bank.
On gold smuggling into the country, Jain said, “The quantum of gold smuggled into the country in the past 12 months was equivalent to 10 years of the smuggled amount.” He added besides gold bars, of late, there was an increase in illegal import of jewellery into the country.
“There is no gold available for jewellers; whatever is being used is recycled and left with bankers, which will not help the industry to address the demand,” Regional Chairman of AIGJTF and Managing Director of NAC Jewellery, N Anantha Padmanaban has said. (KNN/ES/SD)
Past Chairman and present Board Member of All India Gems and Jewellery Trade Federation, Ashok Minawala told KNN that they have made a representation to the Finance Minister mainly on two key issues along with other minor issues.
Although the business at several shops has gone up in the last month, the jewellery industry still faces challenges such as scarcity of raw material and customs duty of 10 per cent on gold.
“We have approached the FM to reduce the import duty on gold to two per cent from 10 per cent,” said Minawala, who is also heading the committee formed to make the representation on behalf of the federation.
High import duty has given rise to smuggling of gold. If the duty is reduced to two per cent, people would find it easier to pay duty and import gold rather than smuggling,” Minawala said.
The federation also said it has urged the Ministry to abolish the 80:20 scheme introduced in August, 2013.
According to the scheme, nominated agencies can import gold on the condition that 20 per cent of the imported amount will be exported. The permission to import the next lot will be given on fulfilment of the export obligation.
“The key issue that the industry is facing is the 80:20 scheme. The import of gold should not be linked to the export,” he added.
The federation has also sought decrease in customs duty from 10 per cent to four per cent in order to bring down the cost and reduce the scarcity of gold.
Further, the federation will also demand to increase the maximum limit of cash in exchange of gold from Rs 20,000 to Rs 2 lakh.
Speaking to reporters in Chennai yesterday at the launch of the ‘Labham’ programme for jewellers in Tamil Nadu, , vice-chairman of AIGJTF, Manish Jain said sales had risen since premium had fallen from Rs 1,500/10g to about Rs 500, following a few recent initiatives by the central bank.
On gold smuggling into the country, Jain said, “The quantum of gold smuggled into the country in the past 12 months was equivalent to 10 years of the smuggled amount.” He added besides gold bars, of late, there was an increase in illegal import of jewellery into the country.
“There is no gold available for jewellers; whatever is being used is recycled and left with bankers, which will not help the industry to address the demand,” Regional Chairman of AIGJTF and Managing Director of NAC Jewellery, N Anantha Padmanaban has said. (KNN/ES/SD)
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