January 17, 21
(IDEX Online) – India’s government must reduce import duties on precious metals and diamonds, or face a surge on smuggling and other criminal activity, an industry bodies has warned.
The All India Gem and Jewellery Domestic Council (GJC) is seeking a reduction from 12.5 per cent to four per cent on gold, silver and platinum in next month’s budget.
“If the tax rate is kept at this level it will encourage smuggling and encourage people to do unorganised business,” the council’s chairman Anish Pethe told Times of India.
Meanwhile the Gem and Jewellery Export Promotion Council (GJEPC) is calling for a reduction in the import duty on cut and polished precious and semi-precious stones from 7.5 per cent to 2.5 per cent.
Trade in gold and diamonds jointly account for 7.5 per cent of the country’s GDP and 14 per cent of its total exports.