All India Gem and Jewellery Domestic Council chief Ashish Pethe stated the EMI facility needs to be prolonged to their industry and to enhance the money buy restrict to Rs 1 lakh from Rs 10,000
Mumbai: The gem and jewellery industry has sought reduction in customs duty on gold to 4 p.c, withdrawal of tax collected at supply (TCS), lower in import duty on polished valuable and semi-valuable gem stones, within the upcoming Union Budget 2021-22.
All India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe instructed PTI, “We urge the government to reduce the customs duty to 4 percent from the current 12.5 percent. If the tax rate is not kept at this level, it will encourage smuggling and encourage people to do unorganised business.”
He additional urged the federal government to hold items falling below HSN-71 (Harmonised System Nomenclature) out of the purview of TCS provisions as the quantity of funds blocked in TCS is 6.67 instances greater than the power to pay revenue tax, leading to blockage of funds.
Pethe additionally stated the power of equated-montly instalment (EMI) needs to be prolonged to the gems and jewellery industry and to enhance the money buy restrict to Rs 1 lakh from the present Rs 10,000.
Gems and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah urged the federal government to cut back import duty on lower and polished valuable and semi-valuable gem stones to 2.5 p.c, from the present 7.5 p.c.
In its Budget suggestions, GJEPC has additionally proposed a hike in import duty on artificial lower and polished stones to 25 p.c from 5 p.c.
Shah stated GJEPC has additionally proposed modification in taxation provisions to enable sale of tough diamonds in particular notified zone in Mumbai.
Malabar Group Chairman MP Ahammed has urged the federal government that tax price, together with import duty on gold and GST, needs to be decreased to 7 p.c.
Ahammed has additionally stated the federal government ought to create an enabling setting for the jewellery retail commerce to introduce MRP pricing in jewellery with none pricing break-up in phrases of GST or different taxes.
Currently, gold attracts 12.5 p.c import duty and three p.c GST and complete duty and GST implication works out at 15.5 p.c.
“Such high taxes have led to large-scale smuggling and tax evasion. Therefore, reducing import duty-GST implication to 7 percent is an effective measure to prevent those industry malpractices,” he added.
Although the tax and duty implication is 15.5 p.c on gold, the precise implication comes to round 20 p.c after including the mining royalties.
The gold and diamond commerce collectively accounts for 7.5 p.c of the nation’s GDP and 14 p.c of the nation’s complete exports. About 60 lakh persons are employed on this sector.
Therefore, Ahammed famous that the federal government ought to take steps to facilitate complete growth of the grade commerce sector in order that it might proceed to play a pivotal position within the progress of the economic system.
PNG Jewellers Chairman and Managing Director Saurabh Gadgil opined that 2020-21 has had a damaging influence on the industry over all.
“While jewellers are on track to recover from the impact of the pandemic and a muted wedding season, we are hopeful that the Budget 2021-22 will look at the jewellery industry favourably and roll out many SOPs and important policy changes that can help revive the industry in the next one year,” he stated.
It is vital that the federal government additionally have a look at insurance policies that encourage banks to kick-begin lending as soon as once more to the jewellery sector, which is able to assist companies throughout the board to keep liquidity and guarantee survival and success, he identified.
From the buyer perspective, he stated gold needs to be deemed as an asset class just like the mutual funds, permitting a rise in client funding confidence in addition to the provision of services like EMI schemes to spend money on gold merchandise.
“Setting up of a spot exchange, announced in the 2018 Budget on an immediate basis, will ensure consistency in pricing of gold across the country. This will boost consumer confidence and help people sell their gold at daily transparent prices,” he added.
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