Gem and jewellery industry seeks lower customs duty on gold

KOLKATA: The gem and jewellery industry Monday approached the government for a reduction in customs duty on gold in the Union Budget for fiscal 2019-20, to be tabled in Parliament on July 5. At present, the customs duty on gold is 10 per cent.

“We have sent recommendations to the Ministry of Finance for lowering it to four per cent,” Vice-Chairman of All India Gem & Jewellery Domestic Council, Shankar Sen, said. Sen told reporters here that reduction of duty on gold would check to smuggle in a big way.

“We have done calculations and found that the resultant loss of government revenue will be compensated by reining in smuggling activities, which will become less attractive,” he said.

Another positive outcome would be lower prices of gold, Sen said.

The council has also urged the government to allow EMI purchases of jewellery, which the RBI currently does not allow, as gold is declared an asset class.

Sen added that the gem and jewellery body has suggested the implementation of the gold monetisation scheme in a revised manner.

The council also said it will organise a two-day conclave ‘Manthan’ on July 2 and July 3 in Mumbai.

Courtesy: Economic Times