Gems, jewellery industry seeks reduction of import duty in Budget
The
gem and jewellery industry has sought reduction in customs duty on gold to four
per cent, withdrawal of tax collected at source (TCS), cut in import duty on
polished precious and semi-precious gemstones, in the upcoming Union Budget
2021-22.
All
India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe told PTI,
"We urge the government to reduce the customs duty to 4 per cent from the
current 12.5 per cent. If the tax rate is not kept at this level, it will
encourage smuggling and encourage people to do unorganised business."
He further urged the government to keep goods falling under HSN-71 (Harmonised
System Nomenclature) out of the purview of TCS provisions as the amount of
funds blocked in TCS is 6.67 times more than the ability to pay income tax,
resulting in blockage of funds.
Pethe
also said the facility of equated-montly instalment (EMI) should be extended to
the gems and jewellery industry and to increase the cash purchase limit to Rs 1
lakh from the current Rs 10,000.
Gems
and Jewellery Export Promotion Council (GJEPC)Chairman Colin Shah urged the
government to reduce import duty on cut and polished precious and semi-precious
gemstones to 2.5 per cent, from the current 7.5 per cent.
Comments
Post a Comment