India's Diamond Industry Takes A Hit With Import Tax Rise On Polished

By Albert Robinson / February 05, 2018 / www.idexonline.com / Article Link

(IDEX Online) - The Indian diamond industry will have to adjust to higher taxes after the government announced a rise in import taxes on polished diamonds to 5% from 2.5%.

 

The announcement was made by Finance Minister Arun Jaitley during his budget speech to Parliament at the end of last week.

 

The tax will be applicable on natural and laboratory-grown polished diamonds, as well as colored gemstones.

 

Gem & Jewellery Export Promotion Council (GJEPC) Chairman Pramod Agarwal said "This move hampers India's chances of becoming an international diamond trading hub. It doesn't provide India with a level playing field vis-? -vis other peers such as Belgium, Dubai and Israel.

 

However, Agarwal welcomed the government's initiative to formulate a comprehensive Gold Policy to develop gold as an asset class, saying that this will ensure a new era of development for the gold market and exports in the sector. He also said it was good that the government was planning to establish a "consumer friendly and trade efficient system of regulated gold exchanges in the country", while reiterating that the GJEPC would "continue to seek a reduction in basic import duty on gold, silver and precious metals and hope that it will be considered as part of the Gold Policy announcement."

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