Budget 2023: Commerce Ministry seeks cut in gold import duty to push jewellery exports

he commerce ministry has sought a reduction in the import duty on gold in the forthcoming budget with a view to push exports and manufacturing of the gems and jewellery sector, sources said.

In July this year, the centre hiked gold import duty to 15 per cent from 10.75 per cent to check the current account deficit (CAD) and rising import of the yellow metal. The basic customs duty on gold is 12.5 per cent. Along with the agriculture infrastructure development cess (AIDC) of 2.5 per cent, the effective gold customs duty will be 15 per cent.

"As the gems and jewellery industry has recommended the commerce ministry for a cut in the duty, the commerce ministry has urged the finance ministry for the same. The ministry has also asked for tweaking import duty on certain other products to boost manufacturing and exports,” the sources said.

Every year, the gems and jewellery export industry seeks a reduction in import duty. Former chairman Gems and Jewellery Export Promotion Council (GJEPC) Colin Shah said that the industry is pinning its hope on the forthcoming Budget to push exports and generate jobs in the sector.