For the gems and jewellery sector, Gold attracts a 10% import duty which is a restraint. In import duty, The Union Budget did not show any reduction even after the industry’s requests.
Mr Pravin Shanker Pandya who is the Chairman of Gems and Jewellery Export Promotion Council (GJEPC) says that for reducing import duty on gold, the long pending demand which is currently at 10 percent, is not considered. Thereby undermining the competitive edge for the gems and jewellery manufacturers compared to their counterparts in other countries, this will continue to fuel smuggling of gold in the country. Because the corporate tax rates have been reduced for those having, MSMEs (medium and small scale enterprises) will have a benefit, he also feels this. Under skill India scheme, the development of centres will help the industry by increasing the number and availability of skilled labour.
All India Gems and Jeweller Trade Federation (GJF) Chairman Mr Nitin Khandelwal told that the industry has been facing serious challenges With the implementation of the PAN card limit of Rs 2 lakh. The PAN card limit should have been increased at Rs 5 lakh In order to avoid the challenges. Since past decade, organised sector, which is growing by at least 2 percent every year, is directly hit due to this. The 10% import duty has been impacting the industry as this is very high and he also feels this. There is also impact on profits of the domestic retail and manufacturing industry. to curb the smuggling of the yellow metal, the duty should be brought down to about 5 %.