CHENNAI: Ahead of the Union Budget next month, All India Gem and Jewellery Domestic Council (GJC) has sought an immediate reduction in import duty on gold from existing 12.5 per cent to 6 per cent to revive the sector and curb the smuggling of the yellow metal.
According to Anantha Padmanaban, chairman of GJC, in 2019 jewellery sector witnessed about 15 to 20 per cent of the reduction in the business and lack of demand has resulted in closing down of workshops with craftsmen losing their jobs.
Along with the economic slowdown, the increase in import duty has affected the sector badly. “The high import duty on gold has increased socio-economic menace in the country in the form of smuggling in alarming proportions and the re-emergence of unorganised channels for procuring gold,” said Padmanaban, adding over 110 tonnes of gold was allegedly smuggled to the country in 2018 and this year it will rise by 10 to 15 per cent.
To boost the sale of jewellery, the government should provide a refund of GST to foreign tourists and NRIs for their purchase at airports, he said, adding, “The mechanism will encourage tourists and NRIs to invest in gold during their visit to India.” The GJC wants the Centre to form a steering committee comprising members from the industry and take their opinions into consideration before framing policies.