Budget 2022: Diamonds to get cheaper after government reduces customs duty to 5%

Reduction of customs duty on cut and polished diamonds from 7.5 per cent to 5 per cent augurs well for the jems and jewellery industry and will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations, Sachin Jain, Managing Director at De Beers India said on Tuesday. This is also expected to bring the cost of polished diamonds that will benefit the end users. 

The move is expected to contribute to greater economic growth for the nation, Jain said.

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The proposal to create a simplified regulatory framework to enable the use of e-commerce channels to export jewellery will help us seamlessly take forward our initiative to promote trade through the digital mode, he further said.

This will bring down transaction costs and save time while enabling us to reach out and expand our customer base globally, he further said listing the advantages of the announcements. 

Overall, we hope that the gems and jewellery sector continues to plays a pivotal role in the growth of the economy ” the De Beers MD said.

Finance Minister Nirmala Sitharaman today announced slashing of customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent. Simply sawn diamond would attract nil customs duty, the FM said in her budget speech.

To facilitate export of jewellery through e-commerce, a simplified regulatory framework shall be implemented by June this year, the FM further said.

To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per Kg is paid on its import.