Ludhiana: Jewellers for custom duty slash, increase in cash-sale limit

According to Vaneet Dhanda, another jeweller from the city, “Income tax structure also requires an overhaul and the rate of tax applicable on the individuals and partnerships should be capped at maximum of 10% for income up to Rs 10 lakh.”

LUDHIANA: With less than a week left for Union budget, city-based jewellers and gold traders are hoping that no new taxes are imposed on them. The traders are also of the view that since their trade is passing through a very bad phase, some steps need to be taken by the Union finance minister to support them. The major demand is cutting down the 12% custom duty applicable on the import of gold, which, according to them, would be a game changer and will also benefit the government immensely. Jewellers also want finance minister to hike the cash-sale limit per party and reduce the rate of income tax in the country.

Manoj Dhanda, general secretary of Ludhiana Jewellers Association, said, “Gold jewellery trade is passing through turbulent times and in the last few years, we have seen worst times in our business. Along with so many complex changes, we are also facing huge competition from online sellers. Though there are lot of changes that need to be done by the central government, our biggest concern is the high import duty. It will make a huge impact on our business if that is reduced. As of now, the import duty on gold is 12%, which few years ago was at 4%. Sadly, it has been gradually increasing every year leading to huge difference between rates of gold in India and other countries. This price difference has given rise to gold smuggling, which is a setback to the government. Centre must understand that if the import duty on gold imports is slashed to 4%, it will be a win-win situation for both traders and the government as well because on one hand it will put an end to smuggling and rates of gold will be at par with other nations leading to boost in business of the local traders. With increased sales, the revenue of government too will boom.”

According to Anand Sikri, president of the Punjab Jewellers Association, “Along with reducing the import duty on gold, finance minister should also hike the cash-sale limit, which has been set at Rs 2 lakh per entity. The rate of gold has increased but the limit of cash-sale has still not been revised in the same proportion. Union budget is the most suitable time to do so and therefore it is our request to the government to increase it to Rs 5 lakh at least, which will promote investment in gold and will give a push to our business as well.”

According to Vaneet Dhanda, another jeweller from the city, “Income tax structure also requires an overhaul and the rate of tax applicable on the individuals and partnerships should be capped at maximum of 10% for income up to Rs 10 lakh.”

Courtesy: Economic Times