In Budget Gold Import Duty will be slashed by Commerce Ministry
The Budget for 2018-19 will be exposed on February 1. In the upcoming budget, the commerce ministry has demanded for reduction in import duty on gold. The goal behind it is to promote gold jewellery exports. According to the reliable source, it is speculation that the Gems and Jewellery Export Promotion Council (GJEPC) has demanded cut in import duty on gold to 4 per cent. At present the import gold duty is at 10 per cent. This sector is contributing significantly in the country’s overall exports.
As per the senior officials, they have always been demanding to reduce cut in import duty on gold. They have been proposing this issue every time. India is really a big user of gold and there is need of a big exporter of the gold jewellery. It is a fact that around 80 per cent of the imported gold is consumed by the jewellery industry and India has one of the best artisans working in the sector.
The senior official has also questioned the government that why cannot we freely import more gold and export value added gold products. He has also added a valuable reason by saying that if it happens, then sudden surge of gold imports from FTA (free trade agreement) countries will also stop.
However, on this note, the Commerce and Industry Minister, Suresh Prabhu recently stated that the ministry is working on a package in consultation with the gems and jewellery industry. The goal of the minister is to boost export and create jobs in this labour-intensive sector.
The Managing Director of PC Jewellers, Balram Garg has also stated that there has been a demand for a significant cut in the import duty as small exporters are facing huge problem in procuring gold. The world’s second biggest gold consumer is India after China.