The Gems and Jewelery Trade Federation (GJF) of India welcomed the government's decision to cancel the 20 percent tax on gold imports, according to a press release sent to Rough & Polished. This decision was followed by a letter sent by the representatives of GJF to Prime Minister Modi on this issue, as well as the constant efforts of the main players of the Indian gold market for 12 months. Also, this decision of the government will help those residents of the country who buy jewelry, preparing for the Indian wedding season. Moreover, the GJF was offered to put into circulation an unused gold of 1,000-1,500 tons for three years using the Rashtriya Swarn Nivesh scheme, which will help to further reduce the balance of payments deficit.
Haresh Soni, chairman of the GJF, said: "We wholeheartedly express our gratitude to the Prime Minister, members of the government and civil servants for reviving our jewelry industry by their decision."
"We call on the Government of India to initiate the process of developing a comprehensive policy for the gold market. Reducing import duties will also help reduce smuggling of precious metal. Given the unenviable position of the jewelry industry of India in recent years, the government should create a special ministerial group that would represent the gold market, "he added.
GJF vice-chairman Manish Jain said: "GJF calls on the Indian government to reduce the tax on the import of gold first from 10% to 5%, and then to 2%, which will quickly make smuggling of metal unprofitable."
The Indian Federation for the trade in gemstones and jewelery, whose members are diamond cutters, wholesale and retail jewelry distributors, distributors, gemmological laboratories, jewelry designers and related companies, represents more than 600,000 participants in the Indian jewelry industry.