NEW DELHI: In a move to give a boost to the Gems and Jewellery sector, the customs duty on cut and polished diamonds and gemstones has been reduced to 5% in the Union Budget on Tuesday.
At present, the import duty on cut and polished diamonds as well as gemstones is 7.5 per cent.
"Simply sawn diamond would attract nil custom duty," Finance Minister Nirmala Sitharaman said.
Presenting the Budget for 2022-23 in the Lok Sabha, the Finance Minister said a simplified regulatory framework will be implemented by June this year in order to facilitate export of jewellery through e-commerce.
Sitharaman announced that customs duty of at least Rs 400 per kg will be levied on imitation jewellery import "to disincentivise import of undervalued imitation jewellery".
Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining is also being reduced, while duty is being raised on sodium cyanide for which adequate domestic capacity exists.
"These changes will help in enhancing domestic value addition," Sitharaman said.