While India’s Union Budget 2020 will be tabled in the Parliament on February 1, 2020, the Gem & Jewellery Export Promotion Council of India (GJEPC) has put forward to the Central Government a few key pre-Budget proposals. According to the GJEPC, these measures would help boost Gem & Jewellery sector that accounts for nearly $ 40 bln in exports; contributes 7% to GDP, 12% to merchandise exports and; employs a workforce of nearly 5 mln.
The key measures proposed include: reduction in import duty on Cut and Polished Diamonds and Gemstones from 7.5% to 2.5%; reduction in Import Duty on Precious Metals Gold/Silver/Platinum from 12.5% to 4%; amendments in Taxation Laws enabling the sale of rough diamonds in SNZ; tax and Import Duty Refund Scheme for Foreign Tourists in India.
In addition, as E-Commerce in Gems and Jewellery Industry is growing rapidly, GJEPC suggests that jewellery, studded or otherwise, up to the value of $ 800 should not be considered as a precious item for the purpose of Courier Import Export Regulations. The GJEPC also suggests introduction of a Job Work Model in Diamond, Precious and Semi-Precious Stones Industry; and job work by Special Economic Zone (SEZ) units for DTA units, and sale of gems and jewellery items from SEZ to DTA units.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
