The Council for the Promotion of the Export of Gemstones and Jewelry (GJEPC) again sent to the Indian government an application for a review of the import duty on gold. GJEPC remains optimistic and hopes that the government will accept its offer with a view to increasing exports of final products related to the import of raw materials.
The duty on the import of gold bullion consistently increased from 300 rupees per 10 g to 10% of the value of imported goods.
According to the chairman of GJEPC Vipul Shah, "after the introduction of the 80:20 scheme, the desired indicators of gold imports were achieved. In this regard, the import duty can be returned to the previous, lower level, for example, to reduce it to 2%. "
"Currently, the current 10 percent duty rate makes it profitable to smuggle gold. It should be noted that the spread of gold smuggling is extremely dangerous, as it undermines confidence in market participants and worsens the reputation of the entire Indian jewelry industry and export segment, violating the provisions on responsible procurement of gold under the Dodd-Frank law.