GJEPC wants import duty on diamonds reduced to 2.5 percent

By

Maverick Martins

Published
Feb 12, 2018

The Gems & Jewellery Export Promotion Council (GJEPC) has requested the government to reduce import duty from the present 5 percent to 2.5 percent on cut and polished diamonds.
 

"We have urged the government to roll back import duty on cut & polished diamonds from 5 per cent to 2.5 per cent. We have also urged the government to review FTA and sign new trade agreements," GJEPC chairman Pramod Agarwal said in a statement.
 
"Union Minister Suresh Prabhu has also shown keen interest to support the Council's initiatives like jewellery parks for fine jewellery and handmade jewellery. The Council will soon present a plan to make India a global manufacturing hub for the gem and jewellery business," Agarwal added.

"We appreciate the recent Government's initiatives like reducing GST on polished diamonds from 3 per cent to 0.25 per cent; reducing corporate tax on companies with turnover upto Rs 250 crore to 25 per cent; and its move to contribute 12 per cent to Employee Provident Fund in wages of new employment for three years in gems & jewellery sector," he further said.
 
Earlier, GJEPC amidst falling jewellery exports due to lack of demand and policy changes in the international market had urged the government to reduce the import duty to 5 percent from the existing 10.
 
GJEPC is also a little sceptical of the incoming e-way bill mechanism and has termed it unsafe fearing digital information could be hacked and the whereabouts and value of diamond shipments discovered by criminals.
 
The government on the other hand has taken cognizance of the demands of the jewellery sector stating that it is looking into the problems of the industry and will take necessary steps to boost the plummeting exports.