Call to Slash India's Import Duty on Polished DiamondsJuly 08, 20
(IDEX Online) - India's ailing diamond industry is calling for a huge cut in the duty charged on its polished imports.
It's also requesting "direct" rough purchases to reduce costs, rather than being forced to buy through middlemen in Antwerp, and a package of other measures relating to e-commerce and gold monetization.
The Gem and Jewellery Export Promotion Council (GJEPC) says the import duty on polished diamonds should be slashed from 7.5 per cent to 2.5 per cent, to kickstart the industry after COVID-19.
The duty was originally 2.5 per cent but was increased to 7.5 per cent in 2018.
It is also urging the finance ministry to take the time and expense out of the current rigmarole for buying rough diamonds.
At present they are sent to special notified zones (SNZs) to be inspected and selected, but they must then be physically returned to Antwerp or Dubai, before being shipped back to India to prevent the sellers having to pay income tax.