All India Gems and Jewellery Trade Federation (GJF), the national nodal and the largest single trade body in India for the promotion and growth of trade in gems and jewellery across India, has suggested government to lower down the duty on gold to ‘2%’ from current ‘10%’. The Federation, while drawing out its budget wish-list suggested that the government should cut the custom duty of gold to help check the smuggling of the precious metal, which was impacting the government coffers, now that the current account deficit (CAD) remains under control.
At present, the current account deficit (CAD) has been under control due to reduction in global gold prices, which is 40% lower to $1,200 from $1,900. Additionally, crude prices (which account for the highest bill for imports) also have reduced by 60% in last six months.
According to GJF, high import duty on gold has neither helped the government nor the trade and instead smuggling has increased. The industry body also reiterated its demand for the government to formulate a comprehensive gold policy for India and make the country a global jewellery hub.
Besides, it asked the government to exclude jewellery from all bilateral or multi-lateral free trade agreements (FTAs) and create a comprehensive gold mining policy for domestic exploration and for cluster development for 'Make in India' fashion jewellery.
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