Gems & jewelry to benefit from duty reduction - Mehul Choksi
28 Feb '07
2 min read
Gitanjali Gems' Chairman Mehul Choksi says the Union Budget presented by the Honorable Finance Minister will provide a good boost to the Indian Gems & Jewellery industry.
The 'benign assessment procedure' for Direct Taxation in the Gems & Jewellery Sector, mentioned by the Honorable Finance Minister in his Budget Speech is another welcome step. The FM seems to be comfortable with the Presumptive Tax Regime, though the details are yet not clear. It remains to be seen how it is implemented.
Cut in Customs Duty in Synthetic Stones from 12.5% to 5%; in unworked corals from 30% to 10%; and in polished diamonds from 5% to 3%; are positive steps. As India is emerging as the domestic market for Diamonds, this move will help India in being at the forefront. But this move will not boost exports. In countries like Dubai, Europe, etc., there is no import duty which helps the country to earn greater revenue by import of diamonds.
The 1.5% cut in the Peak duty from 12.5 percent to 10 percent is another good move for the Gem & Jewellery Industry. This is good for the end consumers as well.
7% to 5% duty cut on machinery will be beneficial to the exports industry. This move was quite expected.
As far as the constitution of the expert Body to look into the potential of this sector and the prevalent taxation practices in India and abroad is concerned, all I can say is …….Wait and Watch….
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