Budget 2022: Nirmala Sitharaman Proposes Reduction in Import Duty on Cut and Polished Diamonds and Gemstones to 5 pc
Budget 2022: Nirmala Sitharaman Proposes Reduction in Import Duty on Cut and Polished Diamonds and Gemstones to 5 pc

Import duty on cut and polished diamonds and gemstones will be reduced to 5 percent while on the sawn diamonds to nil in order to boost the sector, Finance Minister Nirmala Sitharaman said on Tuesday.

At present, import duty on cut and polished diamonds as well as gemstones is 7.5 percent.

Presenting the Budget for 2022-23 in the Lok Sabha, Sitharaman also announced that the government will facilitate the export of jewelry through e-commerce for which it will implement a “simplified regulatory framework” by June this year.

To disincentivize import of undervalued imitation jewelry, the customs duty on imitation jewelry is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added.

Industry Reactions:

Pawan Gupta, Director, PP Jewellers says, “We also appreciate the government’s decision to facilitate the export of jewellery through e-commerce, and hope this will give the boost our jewellery industry needs right now to recover from the adverse impacts of the Pandemic. India has always been a global leader in gems and jewellery however due to the vast nature of this industry earlier there was no verified database of the number of employees in this industry and so much more. Hence, this decision to finally facilitate the export of jewellery through e-commerce shall make it easier for policymakers to reach out and promote our sector in the most favorable way.”

Milind Mathur, Director, Kohinoor Jewellers Agra states, "The support given by the government to regulate the online jewellery market will help to monitor the transactions and data security in the digital world today. This decision will also help in the development of the rural economy. It is a great move for all the organized players in the gems and jewellery sector. The welfare schemes offered by the government will help to boost the confidence of the consumers and help the retailers too."

Pankaj Khanna, Chairman, Khanna Gems says, "The budget 2022 has brought in a big sign of relief for the gems and jewelry industry. Customs duty on cut & polished diamonds, gems to be reduced to 5 percent which will help in a better influx of the gems in the country. This will also mean that the customers will be benefitted with this, by availing better gems and jewelry at affordable prices."

Dishi Somani, Founder, Dishis Designer Jewellery says, "The jewellery industry was on a halt in the pandemic situation, and we finally have a little hope for the situation to improve now. In the budget announcement today, the Finance Minister shared a little relief in our sector. The customs duty on cut and polished diamonds, gems will be reduced to 5% in the upcoming fiscal year and we think it is a beneficial move for us. Also, to digitalize the country and make the framework simpler, the union budget will also lay emphasis on the export of jewellery through e-commerce. A “simplified regulatory framework” is set up by the government and will come into action by June this year."

Sachin Jain, Managing Director, De Beers India says “We are pleased with the budget announcement for our sector, particularly the reduction of customs duty on cut and polished diamonds from 7.5 percent to 5 percent. This will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations and, in turn, contribute to greater economic growth for the nation. The proposal to create a simplified regulatory framework to enable the use of e-commerce channels to export jewellery will help us seamlessly take forward our initiative to promote trade through the digital mode. This will bring down transaction costs and save time while enabling us to reach out and expand our customer base globally.” 

Ketan Chokshi, Jewellery Designer & MD, Narayan Jewellers said, "While the budget this year has very less for the Gems and Jewellery industry to recover from the losses, the new norms do boost the sale. The announcement of a simplified regulatory framework to facilitate the export of jewellery through e-commerce is a welcome move and will encourage the Indian designer jewellery brands to build International customer database and export jewellery without any hassle. This will boost the sale of Jadau and Gold as International buyers will have easy access. Further the reduction in import duty to 5 percent gives a little relief to diamond trader as cut and polished diamonds add up an only 5 percent of total imports of diamonds. Apart from this nothing else has been addressed including the Gold monetization scheme, reduction in gold import Duty, increase in pan card limit amongst others." 

 

 
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