Budget 2022 Expectations: Jewellery council seeks import duty cut on precious metals

The Gem and Jewellery Export Promotion Council (GJEPC) has urged the Centre to reduce import duty on precious metals such as gold, silver and platinum from 7.5 per cent to 4 per cent.

The suggestion was part of the Budget recommendations put forth by the jewellery body.

The Budget for FY23 will be tabled in the Parliament on February 1.

It also urged the Centre to cut import duty on cut and polished diamonds from 7.5 per cent to 2.5 per cent, besides permitting sale of rough diamonds in the 'Special Notified Zone' in Mumbai.

Currently, only viewing of rough diamonds is permitted in the SNZ and no sale is allowed.

Further, the jewellery council asked the Centre to allow exporters to import 10 per cent of the total cut and polished diamonds at nil duty.

"We now target to achieve $100 billion exports when India observes the centenary of its Independence," said Colin Shah, Chairman of Gem and Jewellery Export Promotion Council.

"To kickstart the same, we appeal to the government to announce a special package for the gem and jewellery sector in the forthcoming Budget. Such favourable export and domestic policies would help elevate the gems and jewellery exports sector and lay a foundation for quantum growth. The only way to further scale up this sector is through policy reforms, which will make us more competitive in the global market," Shah added.