Finance Minister Nirmala Sitharaman in her budget speech on Tuesday announced cutting import duty on cut and polished diamonds and gemstones to 5 per cent. At present, import duty on cut and polished diamonds as well as gemstones is 7.5 per cent.
Further, the import duty on sawn diamond has been abolished to zero in order to boost the sector.
Presenting the Budget for 2022-23 in the Lok Sabha, Sitharaman also announced that the government will facilitate export of jewellery through e-commerce for which it will implement a “simplified regulatory framework” by June this year.
“To give a boost to the gems and jewellery sector, the customs duty on cut an polished diamonds and gemstones is being reduced to 5 per cent. Simply sawn diamond would attract nil custom duty,” the FM said.
To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, she added. On the Budget proposal, All India Gem and Jewellery Domestic Council Chairman Ashish Pethe said, “Overall the Budget 2022-23 seems positive but there is nothing specific for the industry in this Budget except the cut in customs duty on cut and polished diamonds and sawn diamond, which is positive for the industry.” “The Budget emphasis on increasing rural economy will indirectly help the gem and jewellery industry,” he added.