GJEPC urges government to cut import duty on gold, work in progress says Commerce & Industry minister

By

Maverick Martins

Published
Nov 28, 2017

Gems and Jewellery Export Promotion Council (GJEPC) amidst falling jewellery exports due to lack of demand and policy changes in the international  has urged the government to reduce the import duty to 5 percent from the existing 10. The government on the other hand has said that it is working out on a solution to the same.
 

The exports of gold from the country are likely to take a hit due to the introduction of 5 percent VAT in Dubai and an additional 5 percent import duty from January 2018.
 
"The degree of difficulty of doing business in India and the import duty of 10 percent is hampering our growth," GJEPC) Chairman Praveen Shankar Pandya said.

Pandya has also asked the government for extension of the Merchandise Exports from India Scheme (MEIS) to the gems and jewellery sector to ease the problems faced by the sector which is currently reeling under high taxation and poor demand in international market.
 
Taking cognizance of the demands of the jewellery sector the Commerce and Industry Minister Suresh Prabhu told PTI that the government is looking into the problems of the industry and will take necessary steps to boost the plummeting exports.
 
Prabhu also said that the ministry is trying to work out a feasible solution to the cut for export duty and decision on the same will be taken during the next budget session.
 
"There is a trade-off as too much of gold import causes a problem for CAD (current account deficit) but on the other hand inbound shipments of the precious yellow metal for export purposes benefit the current account. So how to ensure (this balance) is something which we will have to work”, said Prabhu.
 
“How can you have jewellery without gold? Import of gold for export by making value addition is the best thing and how to structure that, it is something which we have to work, he added”.
 
The GJEPC is the apex body of the gems & jewellery industry in India with over 600 exporters and was set up by the Government in 1966.