[ad_1]
The gems and jewellery exports have been facing a challenging time on account of the economic downturn in key export markets, geo-political concerns, supply and demand side constraints in the global diamond industry, and unavailability of precious metals in the country among others.
However, India has established itself as the leading choice for sourcing gems and jewellery on a global scale, but, to uphold this position of prominence, the industry must remain competitive in the international market. It requires strategic policy interventions that adapt to the evolving business landscape within the sector.
In this interim budget to be presented by Nirmala Sitharaman on Feb 1, the gems and jewellery industry expects safe harbour rule for the sale of rough diamonds in SNZs, reduction in import duty and custome duty, introduction of diamond imprest license, and more.
Amit Pratihari, Vice President, De Beers Forevermark said, “As we look forward to the interim budget, the diamond industry is optimistic about a progressive fiscal policy that fosters growth, promotes consumer spending through tax incentives, and secures global competitiveness.”
Adding to this, Vipul Shah, Chairman, GJEPC, said, “The introduction of diamond imprest license or reduction of import duty on cut and polished diamond from 5 per cent to 2.5 per cent will help to cope up the impact of beneficiation policies undertaken in a number of natural diamond mining countries. This will give India a level playing field with competing countries like China, Vietnam and Sri Lanka. We are hopeful that with the additional support of the Government in terms of reduction in import duty of precious metals and MOOWAR scheme for gem and jewellery industry, the exports of gold jewellery will increase substantially in these challenging times.”
Apart from this, GJEPC has urged the government to consider its long pending demand of the sale of rough diamonds in Special Notified Zones (SNZs) through safe harbour rule and to expand the ambit of entities entitled to operate through SNZs.
It has also sought a reduction in import duty on precious metals like gold bars (7108) from 15 per cent to 4 per cent; on silver bars (7106) from 10 per cent to 4 per cent; and platinum bars (7110) from 12.5 per cent to 4 per cent.
It has also recommended introduction of a mechanism like “Rates & Taxes Refund” through EDI system similar to GST refund and the rate of refund should be aligned with the rates & taxes (i.e. import duty and GST) prevailing as on the day of export.
“To unlock the potential of the organized jewellery retail segment, the budget needs to propose a reduction in the import duty on gold. It also needs to propose measures to control unaccounted business practices by implementing effective tax compliance and transparency mechanisms,” added M. P. Ahammed, chairman, Malabar Gold & Diamond.
The jewellery industry is also expecting an infrastructure boost which can ensure that raw materials are available at the most competitive prices and the availability of gold in the form of a gold loan at competitive pricing.
“While we have the inherent ability to manufacture for the world, the Budget needs to ensure a continuous focus on skill development, and jewellers should get certain duty benefits to import machinery at lower duties and get government support and subsidies,” said Suvankar Sen, MD & CEO of Senco Gold & Diamonds.
“If the Budget can support manufacturers in terms of cost of capital or capex, then that will play a big role and provide a boost for various players, to take steps to improve their reach across the world. Lastly, to boost liquidity and exports in the Jewellery Industry, If the government reduces the customs duty for releasing margin money with banks, it will be helpful for the industry,” he further added.
[ad_2]
Source link
