Exporters of gold jewelry in India could soon claim credit for taxes paid on exports via a tax refund.
The move is being considered by the union government to give export sectors that deal with gold jewelry, glass art ware and other handicrafts an economical boost.
Excise duties in India have already been reduced for most products in a hope to resuscitate the economy since the global slowdown.
The medium excise duty and service tax were reduced by two per cent in the interim budget that was announced in February.
Gold jewelry exports in the country dipped to $513 million in October 2009, compared with $891 million in the same month of 2008.
The Union government is hoping that export growth will turn positive after January 2010.
In comparison to the second quarter, there has been a 15 per cent increase in world demand for gold jewelry over the third quarter of the year.
Courtesy of The Art of Jewelry