Dubai has imposed a 5% import duty on gold and diamond jewelry, according to a report in Art of Jewelry.
According to the report, the the new tax “will likely hurt Indian exports” but may boost bridal jewelry sales in India. The reason: many Indian shoppers had turned to Dubai because of its cheaper gold, and the new price difference may no longer be attractive enough. Further, Indian tourists can avoid 10% customs duty when they come back if they wear a reasonable amount of jewelry.
According to Rajiv Popley, Director of Mumbai-based jewelry firm Popley & Sons, “nearly 45-50% of gold jewelry consumed in Dubai goes from India. It will hurt some big exporters to Dubai from India”.
Back in November, Dubai declared a 5% duty on jewelry effective starting January 2017. The duty is relevant on all types of jewelry including gold, diamonds, studded, coloured stones, platinum and more.
