Cut import duty on gold to end smuggling: GJF

SURAT: Stating that import duty of 12.5% will only encourage gold smuggling, the all-India Jewellery Trade Council members met Union finance minister Nirmala Sitharaman and urged her to take a holistic approach towards jewellery sector by incentivizing gold through reduction on its import duty.

GJF claims that nearly 300 tonne gold is being brought into India through unofficial channels, leading to a big loss in revenue to the government.

Sources said the finance minister said that the government was not against the purchase of gold, but it wants to encourage people to opt for what is available in the country and homemade products.

GJF office-bearers said that the idea of promoting handmade jewellery in India is not feasible by making gold more expensive with additional taxes and duties. Indian consumers are paying one of the highest duties on gold compared to other countries in the world. Import duty on gold in China, the UK and Dubai are zero. Therefore, making yellow metal more expensive in India will only encourage illegal trade.

Chairman of All India Gems and Jewellery Domestic Council (GJF), Anantha Padmanaban told TOI, “If the government has increased import duty on gold, then they should incentivize gold mining in the country. There is enough deposit of gold as per various mining companies. If gold is made available in the country itself, there will be no need to import it from foreign countries.”

Courtesy: Times Of India