GJEPC Advocates Import Duty Reductions On Gold & Diamonds

New Delhi, Jan 22 (KNN) The Gem and Jewellery Export Promotion Council (GJEPC) has urged the government to reduce import duties on gold, cut and polished diamonds, and other raw materials as part of its initiative to enhance global competitiveness within the industry.

The GJEPC emphasises a significant reliance on imports for crucial materials such as gold, diamonds, silver, and coloured gemstones. In pursuit of this, the council is urging for a substantial reduction in the current 15 per cent import duty on precious metals, proposing a decrease to 4 per cent, as reported by PTI.

Simultaneously, the council is also advocating for a reduction in the existing 5 per cent customs duty on cut and polished diamonds to 2.5 per cent.

The council has addressed these issues in order to create a fair competition environment for Indian Micro, Small, and Medium Enterprises (MSMEs) involved in diamond exports. The objective is to put a stop to the departure of Indian diamantaires from diamond mining locations.

Moreover, the council suggests that this proposed reduction in import duties would lead to the generation of more employment opportunities, particularly in the positions of assorters and in the processing of semi-finished diamonds within factories.

The GJEPC is appealing to the government to consider their longstanding request to expand the list of organizations permitted to conduct business through Special Notified Zones (SNZs).

They also advocate allowing the sale of rough diamonds in SNZs using the Safe Harbour Rule. Furthermore, the council proposes that SNZs be permitted to operate as Free Trade Warehousing Zones (FTWZs) when not in use by Foreign Mining Companies and entities.

Maintaining that increased import taxes on polished and cut gemstones could have detrimental effects, the council contends that such a scenario may result in reduced exports and a downturn in job opportunities within the jewellery sector.

(KNN Bureau)