India’s diamond industry is set for a boost following new measures in the July budget that allow direct diamond sales from foreign mining companies and reduce taxes on essential raw materials, Diamond World reports.
Finance Minister Nirmala Sitharaman introduced safe harbor rates, offering fixed, favorable tax rates for rough diamond purchases in Special Notified Zones (SNZs), simplifying the tax process and reducing unexpected liabilities for foreign suppliers. Additionally, taxes on gold and silver have been cut to 6%, and platinum to 6.4%. Diamond sales will no longer be subject to the 2% equalization levy, encouraging sustainability in the industry.
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), praised the government’s decisions: “The reduction of customs duty on gold and silver, the exclusion of the diamond sector from the 2% equalization levy, and the simplification of taxation rules in SNZs for rough diamonds will solidify India’s leadership in the global gems and jewelry industry.”
India’s polished diamond exports dropped sharply again in June, falling 26% year-on-year to $1.02 billion, following a 15% decline in May to $1.47 billion, according to the Gem and Jewellery Export Promotion Council (GJEPC) quoted by IDEX Online.
Polished diamond exports have decreased every month this year, with declines of 20% in January, 28% in February, 27% in March, and 17% in April. Imports of rough diamonds from April to June fell by 15% in value to $3.39 billion and 6% in volume. Overall exports of all gems and jewelry decreased by 15% in June to $1.9 billion.
