During the presentation as part of the preparation of the budget, the Gems and Jewelery Export Promotion Council (GJEPC) urged the Indian government to reduce the duty on the import of gold from 10% to 2%, and also demanded that the norm on mandatory re-export 20 % of imported gold (according to the scheme 80:20). This rule was introduced in August last year and provided for the obligation of agencies and gold importing companies to ensure the subsequent export of 20% of the volume of imports.
"We asked the government to review the policy and create uniform rules of the game, providing Indian jewelry companies with equal conditions by reducing the import duty on gold and silver to 2%," said Vipul Shah, chairman of GJEPC, in a statement to the ministry of finance. - At present, the applied 10% duty makes it economically advantageous to smuggle gold. If the import duty is reduced, we will be able to prevent further leakage and smuggling of gold. "
According to Shah, lowering the import duty will also reduce the cost of export transactions, and now is the most appropriate time to abolish the 80:20 rate, as India's trade deficit has decreased to the desired level. Indian exports of precious stones and jewelry last fiscal year fell 9% to $ 39.5 billion, compared to $ 43.34 billion in the previous fiscal year 2012-13, mainly due to the drop in imports of silver and gold.