Budget 2020: Commerce ministry seeks a reduction in import duty on gold

The Union commerce ministry has sought a reduction in the import duty on gold in the coming Union Budget, with a view to pushing manufacturing and export of the gems and jewellery sector, a source said.

In last year’s Budget, the government raised the tariff on gold to 12.5 per cent. Since then, the global price of gold has risen nearly 20 per cent, magnifying the rise in customs duty. These, the gems and jewellery sector has pleaded, are choking the high-jobs generating sector.

Jewellery retailers and exporters have urged the tariff be cut and also the goods and services tax (GST) on jewellery certification.

“In the past 12-18 months, at least 20 per cent of a skilled workforce of an estimated million has migrated to other services, including food delivery chains like Swiggy and public car transportation services like Ola and Uber. Migrated skilled workers, according to them, earn around Rs 45,000 a month, which the jewellery industry cannot match due to a slowdown in domestic sales,” said Anantha Padmanabhan, managing director at Chennai-based NAC Jewellers. Read Complete Article