The gem and jewelry industry on 24 june come up to the government for decrease in customs duty on the yellow metal in Union Budget for fiscal 2019-20, to be tabled in the Parliament on July 5.
At present, the customs duty on the yellow metal is 10 percent. they have sent recommendations to Ministry of Finance for dropping it to 4 percent
Reduction of duty on yellow metal would check the smuggling in a big way. They have done calculations and found that resultant loss of the government revenue will be compensated by the reining in the smuggling activities, which will become less attractive.
Another positive outcome would be lower prices of the gold.
The council has also advised government to allow EMI purchases of jewelry, which RBI currently does not allow, as the gold is declared an asset class.
The gem and jewelry body has advised implementation of gold monetisation scheme in a revised manner. The council also said it will organize a 2-day conclave ‘Manthan’ on July 2 July and 3 July in Mumbai.