Page 36 - Diamond Digest :: Jan.-Feb. 2021 Issue

Global News & Views.....
A landmark budget for the gem & jewellery industry
Gold import duty reduced from 12.5% to 7.5%
Silver import duty reduced from 12.5% to 7.5%
Duty on Platinum reduced to 10%
Clarification Sought – Equalisation Levy of 2% not applicable on B2B Purchases from International Diamond Auctions
A new Sebi regulated gold exchange has been announced GJEPC welcomes Hon’ble Finance Minister Nirmala
Sitharaman’s visionary budget; reduction on customs duty on raw materials like gold, silver and platinum to boost jewellery exports.
The Finance Minister Nirmala Sitharaman has announced a slew of measures to boost Gem & Jewellery exports by cutting import duty on precious metals such as gold, silver and platinum.
The import duty on gold and silver has been reduced from 12.5% to 7.5%
Import duty on Platinum, Pallidum, etc has been reduced from 12.5% to 10%
Import duty on Silver Dore Bar from 11% to 6.1%
The import duty on Gold/Silver Findings has been cut from 20% to 10%
Import duty on Spent catalyst or ash containing precious metals from 11.85% to 9.2%
Precious Metal Coins from 12.5% to 10%.
Colin Shah, Chairman, GJEPC said, “We sincerely thank the Hon’ble Prime Minister and Hon’ble Finance Minister for this bold and pragmatic growth-oriented budget.
The reduction in import duty from 12.5 per cent to 7.5 per cent will help the Gem & Jewellery exports become globally competitive. Reduction in duty on raw materials would give
Union Budget – 2021-2022 – quote from Mr. Sachin Jain, M. D. De Beers India G and J sector
“Import duty reduction on gold and silver from 12.5% to 7.5% is a step in the right direction and will boost the diamonds, gems and jewellery sector. As a result of this cut, prices of precious metals will fall, which in turn will spur demand and footfalls into the retail/online stores.
As we did not see any drastic increase in taxes, the demand for precious diamonds, gems and jewellery will continue to be strong among consumers. Overall, the budget announcement for the sector has struck an optimistic chord in the new year.”
the much-needed boost to the sector and help it to move to the next level. In fact, high duty on precious metal had made our exports uncompetitive leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong or other centres to buy jewellery which was largely impacting the employment as well as business in India. Along with this the decrease of import duty on jewellery findings to 10% will help the jewellery manufacturer exporters in a big way. ” “Another relief for the industry was the clarification on Equalisation Levy. What we understand that from the budget is that Online Equalisation Levy of 2% is now not applicable on B2B purchases from International Diamond Auctions. This will help our manufacturers of diamonds to buy directly from miners. Sincere thanks to Hon’ble FM for this relief.” adds Colin Shah
FM has also announced setting up of a new Sebi regulated gold exchange. The Finance Minister also announced that Securities and Exchange Board of India (Sebi), will be notified as the capital markets watchdog as regulator for gold exchanges. “We welcome the move as this will surely ease marketability and sale of gold,” added Colin.
Thanking the Prime Minister and Finance Minister for coming out with a visionary budget, Vipul Shah, Vice Chairman, GJEPC said, “The finance minister has done a remarkable job by presenting a bold budget in these difficult times. The budget focused on investments in the infrastructure sector, consolidation of regulations, implementing digitisation in several sectors and reducing regulatory forbearance. There were also various measures to improve consumptions. We want to congratulate finance minister and prime minister for coming out with a landmark budget.”
Quote from Mr Rajesh Neelakanta, ED & CEO of BVC Logistics regarding the Union Budget:
“The logistics industry was looking forward to this year’s budget speech. We were expecting an update on the long- awaited National Logistics Policy. However there have been some hits and misses for us. Certain good points to look forward are reduction in timelines for reopening of assessments from 6 years to 3 years. Businesses can now breathe relatively easy because of this announcement.
Boost to infrastructure development by allowing TDS exemption for investments in to INVITs. Rationalizing custom duties on gold and silver is a welcome move. The focus on logistics through the development of road and highway projects will encourage economic transformation and seek to improve connectivity that is much needed for the growing economy.”
36 • Diamond Digest • Jan. - Feb. - 2021
36 • Diamond Digest • Jan - Feb - 2021