Commerce Ministry supports demand to reduce import duty on gold

Mumbai: The Commerce Ministry has supported the industry's demand to reduce import duty on gold bars. The jewelery industry has long been demanding a reduction in duty on imports of gold in all its forms, claiming that high rates of duty continue to pose a challenge to the country's jewelery exports.

To keep the gem and jewelery industry globally competitive, the Gem and Jewelery Export Promotion Council (GJEPC) recently proposed to the government to reduce the import duty on gold and cut and polished diamonds in the next interim budget.

It is known that the proposal of the Council has received the support of the Ministry of Commerce. India's customs duty on gold is the highest in the world. The effective rate of duty which is 15 percent has been demanded to be reduced to 5 percent.

It is being claimed by the council that if the duty is reduced, not only will the export of jewelery from the country increase, but also there will be a reduction in gold smuggling. As a result of higher rates at home, millions of Indians are seen buying gold jewelery from countries like Dubai and Singapore, which is hurting the local industry.

If the duty is reduced, India's gold and diamond jewelery industry will be supported and exports will increase, said an official of the Ministry of Commerce.

Like India, jewelery exports are currently going through challenging times as a result of the slowdown at some major export hubs. In the middle of 2022, the import duty of gold in the country was increased to 15 percent.