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Union Budget 2021: Gems, jewellery industry seeks reduction of import duty to 4%

Union Budget 2021: Gems, jewellery industry seeks reduction of import duty to 4%
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Union Budget 2021: Gems, jewellery industry seeks reduction of import duty to 4%

Union Price range 2021: Gems, jewelry trade seeks discount of import responsibility to 4%

All India Gem and Jewelry Home Council chief Ashish Pethe mentioned the EMI facility must be prolonged to their trade and to extend the money buy restrict to Rs 1 lakh from Rs 10,000

Union Budget 2021: Gems, jewellery industry seeks reduction of import duty to 4%

Representational picture. Reuters

Mumbai: The gem and jewelry trade has sought discount in customs responsibility on gold to 4 p.c, withdrawal of tax collected at supply (TCS), reduce in import responsibility on polished treasured and semi-precious gem stones, within the upcoming Union Price range 2021-22.

All India Gem and Jewelry Home Council (GJC) Chairman Ashish Pethe advised PTI, “We urge the federal government to scale back the customs responsibility to 4 p.c from the present 12.5 p.c. If the tax price just isn’t saved at this degree, it can encourage smuggling and encourage folks to do unorganised enterprise.”

He additional urged the federal government to maintain items falling underneath HSN-71 (Harmonised System Nomenclature) out of the purview of TCS provisions as the quantity of funds blocked in TCS is 6.67 instances greater than the power to pay earnings tax, leading to blockage of funds.

Pethe additionally mentioned the ability of equated-montly instalment (EMI) must be prolonged to the gems and jewelry trade and to extend the money buy restrict to Rs 1 lakh from the present Rs 10,000.

Gems and Jewelry Export Promotion Council (GJEPC) Chairman Colin Shah urged the federal government to scale back import responsibility on reduce and polished treasured and semi-precious gem stones to 2.5 p.c, from the present 7.5 p.c.

In its Price range suggestions, GJEPC has additionally proposed a hike in import responsibility on artificial reduce and polished stones to 25 p.c from 5 p.c.

Shah mentioned GJEPC has additionally proposed modification in taxation provisions to permit sale of tough diamonds in particular notified zone in Mumbai.

Malabar Group Chairman MP Ahammed has urged the federal government that tax price, together with import responsibility on gold and GST, must be lowered to 7 p.c.

Ahammed has additionally mentioned the federal government ought to create an enabling surroundings for the jewelry retail commerce to introduce MRP pricing in jewelry with none pricing break-up when it comes to GST or different taxes.

Presently, gold attracts 12.5 p.c import responsibility and three p.c GST and whole responsibility and GST implication works out at 15.5 p.c.

“Such excessive taxes have led to large-scale smuggling and tax evasion. Subsequently, lowering import duty-GST implication to 7 p.c is an efficient measure to forestall these trade malpractices,” he added.

Though the tax and responsibility implication is 15.5 p.c on gold, the precise implication involves round 20 p.c after including the mining royalties.

The gold and diamond commerce collectively accounts for 7.5 p.c of the nation’s GDP and 14 p.c of the nation’s whole exports. About 60 lakh individuals are employed on this sector.

Subsequently, Ahammed famous that the federal government ought to take steps to facilitate complete improvement of the grade commerce sector in order that it could actually proceed to play a pivotal function within the development of the economic system.

PNG Jewellers Chairman and Managing Director Saurabh Gadgil opined that 2020-21 has had a destructive influence on the trade over all.

“Whereas jewellers are on observe to recuperate from the influence of the pandemic and a muted marriage ceremony season, we’re hopeful that the Price range 2021-22 will have a look at the jewelry trade favourably and roll out many SOPs and essential coverage adjustments that may assist revive the trade within the subsequent one 12 months,” he mentioned.

It’s essential that the federal government additionally have a look at insurance policies that encourage banks to kick-start lending as soon as once more to the jewelry sector, which can assist companies throughout the board to take care of liquidity and guarantee survival and success, he identified.

From the patron perspective, he mentioned gold must be deemed as an asset class just like the mutual funds, permitting a rise in client funding confidence in addition to the provision of services like EMI schemes to spend money on gold merchandise.

“Establishing of a spot change, introduced within the 2018 Price range on a right away foundation, will guarantee consistency in pricing of gold throughout the nation. This may enhance client confidence and assist folks promote their gold at each day clear costs,” he added.

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