GJEPC welcomes govt move to exempt AIDC on gold, silver for exporters; says to boost exports

retail
By retail February 22, 2021 13:11

GJEPC welcomes govt move to exempt AIDC on gold, silver for exporters; says to boost exports

The Gem and Jewellery Export Promotion Council (GJEPC) on Thursday welcomed the government’s move to exempt the Agriculture Infrastructure and Development Cess (AIDC) on gold and silver bars and dore for exporters, and said it will boost jewellery exports.

The Gem and Jewellery Export Promotion Council (GJEPC) on Thursday welcomed the government’s move to exempt the Agriculture Infrastructure and Development Cess (AIDC) on gold and silver bars and dore for exporters, and said it will boost jewellery exports. “Exemption of AIDC on gold and silver bars and dore is a master stroke by the government, which would have positive implications on the growth of the gem and jewellery export sector. This has come as a great relief to our exporting community,” GJEPC Chairman Colin Shah said in a statement.

He said this charge of cess made the jewellery exports unviable and uneconomical, as the cess is not part of import duty. “Jewelleries are sold on international pricing of gold, and this additional cess hampers the export and growth of the industry,” Shah added.

On February 17, the finance ministry had issued the notification of the amendments made to the Finance Bill 2021 with regards to the AIDC exemption on gold and silver bars and dore for exporters. However, the notification maintained that the gold and silver bars and dore imported for domestic use will attract AIDC. In the Finance Bill, 2021, AIDC of 2.5 per cent was levied on import of gold/silver bars and dore.

The government’s recent decisions, including the reduction of import duty on precious metals like gold and silver to 7.5 per cent from 12.5 per cent and the amendments made on the gold monetisation scheme (GMS), will also boost the industry, GJEPC said in the statement.

These amendments will encourage domestic gold to come into the system by empowering banks, large jewellery stores as BIS-certified gold collection centres, it added.

 

Courtesy: Economic Times

retail
By retail February 22, 2021 13:11
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