GJEPC praises government AIDC exemption on gold and silver for exporters
On Thursday, the Gem and Jewellery Export Promotion Council praised the Union Government’s plan to exempt gold and silver from the Agriculture Infrastructure and Development Cess, seeing it as a boon for exporters.
“Exemption of AIDC on gold and silver bars and doré is a master stroke by the government, which would have positive implications on the growth of the gem and jewellery export sector,” said GJEPC chairman Colin Shah. “This has come as a great relief to our exporting community.”
“Jewelleries are sold on international pricing of gold, and this additional cess hampers the export and growth of the industry,” said Shah, explaining that cess is not levied as part of import duty.
However, although gold and silver bars and doré are exempt from AIDC if they are scheduled for export, those intended for domestic use will still attract the cess. The 2021 Finance Bill levied 2.5% AIDC on the import of gold and silver bars and doré.
In its statement, the GJEPC also welcomed other recent government measures intended to boost the gem and jewellery industry. These include the reduction of import duty on precious metals including gold and silver to 7.5% from 12.5%, and amendments made to the gold monetisation scheme. The GJEPC shared that these measures will aid the industry by empowering banks.
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